Kepco, Nuansa to build coal terminals in East Kalimantan

Korea Electric Power Corp (Kepco) said on Thursday it has signed a cooperation agreement with Indonesia's Nuansa Group to build and operate coal terminals in East Kalimantan with value of US$150 million.

Under the deal, Kepco, South Korea's Kenertec Co and PT. Nuansacipta Coal Investment, an affiliate of the Nuansa Group, will form a task force to build and will conduct feasibility studies on the project to build and run two offshore terminals and one onshore terminal, Kepco said a statement on Thursday as quoted by agency.

"Because Indonesia restricts foreign firms from directly owning new mines, building coal terminals is the realistic alternative for a foreign company to secure coal in the country," the company said. (*)