Reliance?s coal unit to start production next year

PT Sriwijaya Bintangtiga Energi (SBE), a coal unit of one of India?s largest business houses Reliance Anil Dhirubhai Ambani (ADA) Group through its power unit Reliance Power Limited will start initial low-rank coal production from its South Sumatra mines next year, an industrial source told Petromindo.Com.

SBE mine, which located in Musi Rawas regency, will start production next year without giving the exact timeline and initial volume production. ?So far, we are on schedule to start our coal production and also our railway project,? the source said without giving further details.

In June last year, Reliance Power signed a share-sale agreement with PT Sugico Group to acquire three coal mines. The three mines located in the South Sumatra province were owned by PT Sriwijaya Bintangtiga Energi and PT Brayan Bintangtiga Energi, subsidiaries of the Sugico Group.

In May 2011, Reliance ADA Group chairman, Anil Ambani committed to invest worth $5-10 billion in various businesses in Indonesia. The investments would be made in various sectors ranging from infrastructure, railways, power plants, mines, financial sector, media and entertainment business.

Reliance plans to produce 50 million tonnes of coal a year within five years from mines in South Sumatra. The company also plans to set up a 230-km-long railway line that will link its coal operations in Batanghari, South Sumatra, to a port in Muara Sabak, Jambi. (denny)