Jakarta supports coal railway plan in East Kalimantan

The coal director of the ministry of energy and mineral resources Mahyudin Lubis called on visiting lawmakers from the Pasir regency in East Kalimantan to support the plan to develop a 260-km coal railway connecting Pasir and Tabalong regency in South Kalimantan.

Mahyudin said that the railway would allow the exploitation of huge coal deposits in the two provinces economically.

A group of legislators visited the ministry last week to seek supporting data to decide on the proposed railway project.

Mahyudin said that according to a recent study conducted by the Institute of Energy Economics Japan (IEEJ), New Energy and Industrial Technology Development Organization (NEDO), and the Ministry of Economy, Trade and Industry (METI) coal reserves in East Kalimantan was estimated to reach 13.8 million tons.

The railway project will be developed by a consortium involving local and foreign companies. The foreign investors included Germany?s Feroostal, Siemens AG, and Bombardir.

Hong Kong?s investment firm Xinfa Group is also set to provide financing for the project.(*)