Petrocom?s coal blending facility feasible in Indonesia

Hong Kong-based Petrocom Limited Energy has concluded its feasibility study on its plan to build cleaner technology of coal blending facility in Cilegon, Banten with the expected output of 10 million tonnes of blended coal per year.

The construction of the project with the total investment of between US$30 million and $40 million was expected to be concluded within 18 months at the latest for its full operation.

It will be the first coal blending facility in Southeast Asian region and the third project in the world. The first was built in Rotterdam followed by the already operational one in China.

?We just concluded feasibility study (of the Coal Blending Facility),? Chairman and CEO Petrocom Indonesia, Howard Au told press conference in Banten, adding that the study showed the project was feasible in Indonesia.

He further said that the company was proud to bring the technology to Indonesia as the country has huge coal resources with varying qualities which were often unfit with specifications required by local consumers such as the state utility company PT PLN.

Howard then handed over its due diligence reports of the coal blending facility to officials from the Industry Ministry and the Mineral and Energy Resources Ministry after the press conference.

The Friday?s meeting was supposed to conduct the signing of a memorandum of understanding with the Indonesia?s biggest steel producer, Krakatau Steel as the project was expected to be built in Krakatau?s area. The MoU signing however was postponed with no clear reasons. (adianto)