Adaro to build $395m coal conveyor

PT Adaro Indonesia, one of the country?s major coal miners, plans to build a 68-kilometer conveyor system in order to boost coal sales volume from its mining site in South Kalimantan, Investor Daily reported on Monday.

The company?s President Director Boy Garibaldi Thohir said in Jakarta last week that the company would invest about US$395 million to build the conveyor which would deliver coal from its mining area in Tutupan in Banjarmasin to the coal stockpile facilities near the Barito River in Kelanis, South Kalimantan.

He said that the construction of the conveyor which would have a capacity to deliver 40 million tons of coal a year would be commenced in 2009. ?The new conveyor is expected to begin operation in 2011,? he was quoted as saying.

To support the operation of the conveyor, Adaro would also build a mine-mouth power plant with a capacity of 2 x 30 MW, Boy said, adding that the construction of the power plant and conveyor would cost about $500 million.

About $150 million of the required funds would come from the company?s internal source, he added.

Adaro which produces coal of subbituminous type expects to produce 38 million tons this year and 45 million tons in 2009. (*)