KS, CIBT kick off Cigading coal terminal construction

State-owned steel maker PT Krakatau Steel (KS), through its unit PT Krakatau Bandar Samudera (KBS) and PT Cigading International Bulk Terminal (CIBT) started on Friday the construction of a US$45 million coal terminal at the Cigading Port in Cilegon, Banten.

KS President Director Fazwar Bujang said that the terminal will facilitate KS coal supply, which is expected to increase steel output to 5 million tons in 2011, and coal exports, especially to South of Asia and Europe.

?The terminal is expected to be completed soon so that the terminal can be operated in 2009,? he said, adding the terminal will have a coal discharging capacity of 5 million tons per year.

KBS is the operator of the Cigading port.

In July 2007, the firm clinched a deal with CIBT under which the latter is granted the exclusive right to develop a coal terminal in the Cigading Port area for international trade.

CIBT is a 95 percent subsidiary of Sinomast Metacorp (Labuan) Ltd., a 50:50 joint-venture company between Malaysian firm Metacorp Berhad and PT Bintang Sinomast Limited.

The Cigading Port has a coal discharging capacity of 15,000 ton per day. (*)