Muba regency has coal reserves of about 3.8 billion tons

The Musi Ilir or Muba regency in South Sumatra province has coal deposits of about 3.8 billions tons, according to the head of the regency?s mining office Zuher Effendi.

He said the larger part of the coal reserves are found in Sungai Lilin, Bayunglincir, Batanghari Leko, Babat Toman, and Sekayu districts. "If the coal reserves are exploited, the annual coal production could reach about 200 tons," he said.

The regency administration is currently preparing the establishment of a company, which will handle coal, oil and gas exploration activities in the area. Zuher said the local administration has agreed to form the company, which will be named Petro Muba.

"Hopefully, within the two months time, the executive board of the new company would be installed," he was quoted as saying by Sumatra Express on Wednesday.

In addition, the regency administration would also cooperate with a Chinese company to develop a gas-fired power plant. (*)