PTBA hopeful to double production in 2006

Monday, March 10 2003 - 01:48 AM WIB

State coal miner Pt. Tambang Batubara Bukit Asam said in the next two or three years, it would still unlikely be able to increase output due to transportation constrain, but saw chance it may be able to double production from 2006 six on if state railway firm PT. KAI could improve coal transportation capacity.

?Productionwise, it?s no problem for us to increase output up to 20 million tons per annum or more, but transportation problem is headache to PTBA. We have lost lots of export opportunities because of that,? said president Ismet Harmaini told Petromindo.Com over the weekend.

PTBA depends its coal transportation on PTKAI, whose poor financial condition and low coal transportation fee; making PTKAI unable to expand railway capacity.

PTBA had been trying to find ways to boost coal transportation volume, including constructing canals from its miningsite in Tanjung Enim to Bangka Channel. But the study and construction of these canals could take years.

Ismet said PTKAI and a private company had been in serious talk to cooperate in boosting coal transportation capacity Tanjung Enim to Tarahan coalport in Lampung and from Tanjung Enim to Kertapati port.

He said that both company will first conducted feasibility study for six months and if proven feasible, railway upgrading is estimated to take two years.

?Under the system, PTKAI and the investors will be tied in revenue sharing scheme, while PTBA will sign longterm transportation contract with them.?

According to Ismet, the Tanjung Enim-Tarahan railway will be designed to transport 15 million tons of coal per year, doubling the current capacity, while transportation capacity to Kertapati will be boosted to 4 million tons per year.

?Hopefully this could materialize in 2006.?

PTBA?s production currently stuck at around 10 million tons per year, with some 80 percent production goes to domestic consumers, such as Suralaya power plant in banten province and Paiton powerplant in East Java.

PTBA currently has 370 million coal reserve that can be mined open-pit.(alex)

Share this story

Tags:

Related News & Products