Chinese investors serious in developing Ombilin coal mine

Chinese investors have expressed serious interest in developing coal mining in Ombilin, West Sumatra and they are likely to start their final survey activities early next year, Bisnis Indonesia reported on Monday quoting the local investment officials.

The chairman of the West Sumatra investment office, Syahrial Syarif, said on Thursday that the Chinese investors had made serious efforts in their plan to take over the Ombilin coal mine from state owned coal producer PT Batubara Bukit Asam.

"A team from China will be dispatched to West Sumatran next year to carry out more surveys on the potential of the province?s underground coal mining," he was quoted as saying by the newspaper. "They are seen very serious in taking over the coal mine," he added.

During their forthcoming visit, the Chinese investors will also explore if their plan to take over the Ombilin coal mine will be accepted by the local people. "But I am sure the local people will support their plan so that their will be certainty in the future of the coal mine," Syahril said.

PT Batubara Bukit Asam has reported ended its cooperation with the state owned railway operator PT Kereta Api Indonesia on the transportation of the coal from the mining site due to the depletion of the coal resources in its open-pit mining activities. This has signaled the end of the company?s coal mining operation in the area because the company considers that the development of underground coal mining operation would be too expensive. (*)