AKR expands coal mine operations

PT AKR Corporindo Tbk, a distributor of petroleum and basic chemical products, has provided loans worth Rp 150 billion to the company?s subsidiary PT Anugrah Karya Raya (AKR) to further expand the latter?s coal mine business, Kontan newspaper reported.

Suresh Vembu, the director of AKR, said in Jakarta that the loans would be used to finance construction of infrastructure facilities such as hauling road and coal terminal, which would absorb about Rp 200 billion in total investment.

In order to support the mining operation, AKR would build a 49 km hauling road along the Barito river in Central Kalimantan. The road would connect the company?s mining area and a new coal terminal which would be built in Teluk Timbau, North Barito, Central Kalimantan.

AKR, which has recently operated coal port in Buntok Kecil covering an area of 42 hectares, is building a new coal port on a river in Muara Taweh.

At present, AKR conducts mining activities in one of the company?s five coal concession areas in Kalimantan, which have total areas of 24,388 hectares. This year, the production is expected to reach 1 million tons.

AKR has previously signed sales contracts for up to about 780,000 tons of coal with a Chinese company.(*)