Investment in mineral, coal sector jumps to $7.43b

Despite the downturn in the global mining industry, investment in the country?s mineral and coal sector last year jumped by 44.9 percent to US$7.43 billion from $5.13 billion in the previous year, according to Ministry of Energy and Mineral Resources data.

Director General of Mineral and Coal at the ministry R. Sukhyar said that the drop in the price of mining commodities has not deterred mining investors from making fresh investment in the country. ?Many businesses conducted expansion, thus investment last year was quite huge,? he said as quoted by Kontan Friday.

Of the total investment, more than half, or around $4.62 billion, came from the mining services sector as the firms developed expansion of mining projects owned by their clients.

Investment made by mining firm holding the KK mining contract of works reached $1.74 billion, while investment made by coal miners holding the PKP2B coal contract of works totaled $875.4 million, and investment by IUP mining firms and state-owned firms reached $199.8 million. ?The figure may increase as we?re still collecting data for investment in the processing and refining sector,? Sukhyar said. (*)