Adaro to spend $50m to increase Barito Channel capacity

IDX-listed energy firm PT.Adaro Indonesia will invest US$50 million to increase throughput capacity of Barito Channel in South Kalimantan from 100 million tonnes per annum currently to 300 MTPA.

Adaro, through its affiliated company has won tender to increase the channel capacity and has appointed a Dutch firm to undertake the dredging project.

Under the deal, Adaro?s affiliate company will operate the channel and collect fee from channel users.

Adaro said in a presentation released Friday that currently the Barito Channel could only be used by barges for eight hours per day and had caused transportation bottleneck, which may also hindered Adaro?s mining unit PT. Adaro Indonesia to increase output, as most of the coal produced is barged through the channel.

The company did not say when the Channel dredging would be completed. (denny)