Bayan says railway project to boost production capacity
Saturday, May 28 2016 - 05:04 AM WIB
IDX-listed coal mining firm PT Bayan Resources Tbk said that its annual coal production capacity will get a boost if the planned double-track coal railway linking East and Central Kalimantan has been realized by Russian Railways.
Bayan Director Russel Neil told Petromindo.com on Friday that his company has signed a MoU with Russian Railways to use the planned railway facility to transport coal from the mines to the port.
He said that Bayan has been relying on river transportation system, which has often been hampered during dry season, limiting production capacity to 30 million tons per year.
He said that if a single track railway is developed, the company?s annual production capacity could jump to around 45 million tons. ?The capacity will be much higher if a double-track railway is realized,? Neil said.
Russian Railways? local subsidiary PT Kereta Api Borneo is planning to develop a double-track coal railway in Kalimantan.
Bayan, which operates coal mines in East and South Kalimantan provinces, has set coal production target of 11-14 million tons this year and sales volume target of 13-16 million tons. The company has coal reserves of about 1 billion tons in East Kalimantan.
Editing by Reiner Simanjuntak