Gunung Bayan to build East Kalimantan coal railway

Tuesday, September 4 2012 - 06:38 AM WIB

By Cepi Setiadi

PT Gunung Bayan plans to build a 185 km coal railway linking coal mines in Tabang sub-district in Kutai Kartanegara, East Kalimantan, and the port facility in Lubuk Tutung, Governor Awang Faroek Ishak said.

He said on Tuesday that the project will require total investment of around US$1 billion. He did not provide details.

Awang also confirmed an earlier report that Ras Al-Khaima Minerals and Metals Investment in cooperation with the provincial administration will built a separate 150 km coal railway linking Muara Wahau and Lubuk Tutung.

Awang said in addition to transporting coal, the railway will also be used to transport other key commodities such as rubber and palm oil, and even passengers in the future.

Editing by Reiner Simanjuntak

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