PTBA sign MoU to build coal transportation canal

JSX-listed state coal miner PT Batubara Bukit Asam (PTBA) said Thursday it had signed a memorandum of understanding (MOU) with a consortium of investors whose members including Italian engineering group Techint Technologies to conduct a feasibility study (FS) of building 140-km coal transportation canal that will connect PTBA?s Tanjung Enim mine to Musi Banyuasin river.

?Under the scheme, the consortium will build the canal and PTBA will pay for transportation fee. The FS is expected to be completed in one year,? PTBA president Ismet Harmaini said.

Ismet said the canal would be able to transport as much as 20 million tons of coal per year.

Tanjung Enim?s coal will be transported to Musi Banyuasin river by barges with capacity of 5,000 tons and then to loading port in Bangka Channel or to Tanjung Api-Api port in Palembang, said Ismet.

Ismet added that based on preliminary study, the canal would cost some US$ 400 million.

PTBA is depending on ailing state railway company PT KAI for its coal transportation, and is unable to increase production of around 10 million tons per year due to limited capacity of PT KAI. PTBA transports most of its Tanjung Enim coal to Tarahan coal port in Lampung. (godang/robert)