Reliance to sign coal railway S. Sumatra-Jambi deal

The plan of Indian company Reliance Anil Dhirubhai Group to build a coal railway South Sumatra-Jambi has received a warm welcome from Jambi Province?s governor Hasan Basri Agus, who said that the construction of the railway would increase coal exports from the province.

The memorandum of understanding on the construction of the railway project will be signed during President Susilo Bambang Yudhoyono?s visit to India next week. Many other projects will be also signed in the same event.

The railway will connect Reliance?s coal mine in Musi Rawas, South Sumatra and the Muara Sabak port in Jambi. From the port, the coal will be shipped to India, one of the largest buyers of Indonesian coal.

In August last year, Reliance is reported to be considering investments of up to US$5 billion in Indonesia. Reliance is involved in several projects, including railway and coalmining in South Sumatra. The company holds three coal mining licences in South Sumatra.

Reliance plans to produce 50 million tonnes coal a year within five years from mines in South Sumatra. The company has 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 Jambi. (*)