PT Allied Indo Coal will tie up with Chinese company

West Sumatra-based coal mining company PT Allied Indo Coal (AIC) will cooperate with PT Telaga Makmur to carry out underground coal mining activities in its mining site in Sawahlunto. Telaga will cooperate with Chinese firm Campo to carry out the plan.

AIC?s president director, Boy Garialdi Thohir, said in Padang over the weekend that the company did not have much alternatives but to carry out underground mining activities to boost its coal production which has significantly declined in recent years due to the depletion of the coal deposits in the open-mining sites.

In realizing the plan, AIC will cooperate with PT Telaga Makmur which will then invite Campo of China in doing the underground mining exploration.

Telaga Makmur?s president Ali Imran said that the company would allocate between Rp 65 billion (US$=Rp9,000) to finance the exploration activities and infrastructure.

The Sawahlunto coalmine is the main supplier of PT Semen Padang and steam power plant PLTU Sigantung. But due to decline in the local coal production, the two companies have to procure coal from other suppliers. (*)