Indonesia, Japan team up to build UBC facility at Arutmin?s Asam-Asam mine

Japan coal research center Japan Coal Energy Center (JCoal) and steel giant Kobe Steel team up with South Kalimantan coal miner PT.Arutmin Indonesia to build a semi-commercial upgraded brown coal (UBC) facility in the latter?s Asam-Asam mine, an Arutmin executive said on Friday.

The plant will upgrade low calorific value coal to more than 6,000 Kcal/kg with capacity of 1,000 tonnes per day, Arutmin director Kazuya Tanaka said.

If proven commercial, the facility?s capacity could be ramped up to 5,000 tonnes per day with additional investment of $80 million.

The plant will be operational in 2008, he said. Investment for the facilities would amount up to US$60 million, 50 percent of which will be shouldered by Japan?s Ministry of Economy, Trade and Industry (METI) through JCoal and the balanced will be paid equally by Kobe Steel and Arutmin.

Tanaka said coal production from the facility would be exported to Japan.

The project will also involved Indonesia?s Coal and Mineral Technology Center, a research institution under the ministry of energy and mineral resources. (godang)