Adaro to select overland conveyor contractor end of Sept

IDX-listed coal giant PT Adaro Energy expects to award EPC contract for the construction of 38-km overland conveyor at its coal mining subsidiary PT Adaro Indonesia (AI) by the end of September 2009.

The company said four international contractors were participating in the tender.

?The investment in the overland conveyor is between US$200-$250 million and will be funded using internal cash and debt. Construction is expected to commence next year and take approximately two years to complete,? the company said.

The project is part of Adaro?s plan to increase production capacity to 80 million tonnes per annum in 2014 from 45MTPA currently. The conveyor will compliment the existing 75-km haul road as well as an adjacent crushing plant, stacking system and barge loaders.

The conveyor is expected to provide cost savings of approximately $2-$3 per tonne, the company said.

AI is currently Indonesia?s second largest thermal coal producer, operates the largest single coal mine in Indonesia, and is a significant supplier to the global seaborne thermal coal market. (alex)