China interested in exploring coal in West Sumatra

A Chinese coal mining company has expressed its interest to explore part of the coal mining area owned by state-owned Bukit Asam coal mining company, an official said on Saturday.

"If a working contract agreement is reached, the China Machinery Export & Import Corp (CMC) will function as a mining contractor," said Ombilin Mining Company's vice manager, Dadzui Ismail, as quoted by Antara in Sawahlunto, West Sumatra, on Friday.

He said six CMC executives observed the exploration area last year and by the end of this month, 21 CMC executives, including a number of experts, would come again to make a pre-feasibility study.

"In their second visit, we will hold technical and non-technical negotiations with them. We hope that a working contract agreement can be signed in the near future," Dadzui said.

The coal mining area that the Chinese mining company and its Indonesian partner would likely explore was situated at the Ombilin II field, he said.

The area was expected to reserve 67 million tons of coal; 37 million of which was ready for exploration, while the total reserve coal in the entire Ombilin area was expected to reach 112 million tons, he said. (*)