Low water level of Barito River hampers shipment of coal

The dry season which has caused the sharp decline in water level of Barito River has reportedly hampered the shipment of coal in Central Kalimantan province, prompting a local coal mining company to pile up products at the company?s stockyard, Bisnis Indonesia reported Friday.

Head of mining division of Central Kalimantan?s chapter of the energy and mineral resources agency Syahril Tarigan said in Palangkaraya that Barito River, the biggest river in Central Kalimantan, which has become the major line of transportation for coal, can no longer be used over the last several months because its water level has sharply declined.

Many coal barges, including big-scale ones with a loading capacity of 10,000 tons were reportedly stranded on their way to a seaport, Syahril said.

According to Syahril, as the result of river transportation problem, hundred thousands of coal is now piled up at the company? stockyards and meanwhile, finding another alternative means of coal shipment is out of the question.

?The piled up coal should be processed again to meet the calorie standard set by buyers. Obviously, this will mean extra cost that the company has to bear,? he said.

Data at Central Kalimantan?s mining agency shows that as of last October, the coal outputs reached 1.25 million tons, of which 663,000 tons have been shipped for market export.

?This means that within this year, only half of the coal products in Central Kalimantan has been shipped, with the remainder piled up at PT Marunda Graha Mineral?s storages,? he said.

PT Marunda Graha Mineral holds a second generation of Coal Contract of Work (PKP2B) that operates in North Barito regency, Central Kalimantan. (*)