Mitrabara to begin Kalimantan port expansion soon

IDX-listed coal miner PT Mibrabara Adiperdana Tbk plans to soon start construction work for the expansion of its coal port in Muara Bengalun, Malinau Regency, North Kalimantan, Konta reported on Saturday.

The paper quoted company President Director Khoirudin as saying that construction was scheduled to start in the second half of this year with a target for the project to be completed in 2015, when the company?s coal output is projected to more than double to 4 million tons from last year?s 1.8 million tons.

Mitrabara will finance the port expansion project from the proceeds of its recent initial public offering (IPO). About half of the more than Rp 319 billion proceeds will be used to finance the project.

Khoirudin said that the company?s existing port facility could only accommodate production capacity of up to 2.5 million tons. He said that under the planned expansion project, the company will develop new jetty, conveyor, stockpile and crusher.

He said that Mitrabara plans to increase coal output this year to 2.5 million tons. (*)