RI-Malaysia consortium to jointly develop coal mine in Riau
Tuesday, June 5 2001 - 06:00 AM WIB
A consortium comprising of Malaysian and Indonesian companies plan to develop a coal mine in Carenti, Riau province to feed the coal needs of a steam-powered power plant to be built in the neighboring country.
Bisnis Indonesia reported on Tuesday that a group of Malaysian companies in the consortium would include the country?s state owned power company Tenaga Nasional Bhd and while the Indonesian group would comprise state owned PT Tambang Batubara Bukit Asam (PT BA) and state owned state electricity company PLN.
PT BA?s president R.A. Sunardi said in Jakarta last week that the Malaysian companies sought a 50 percent ownership in the joint venture while the other 50 percent would be allocated for the Indonesian companies.
The Carenti coal mine is part of PT BA?s coal mining concessions. But like the Ombilin coal mine in West Sumatra, the Carenti is not included in PT BA?s privatization program.
He said that PT BA and the Malaysian companies had reached an initial agreement on the development of the coal mine. "The memorandum of understanding on the establishment of the consortium was signed in January," Sunardi added.
He hoped the consortium could begin its operation in 2006. According to the International Mining Consultant, the Carenti has a coal deposit of 569.07 million tons.
PT BA, which focuses most of its coal mining operations in Tanjung Enim, South Sumatera, also plans to develop new coal mining in the province as part of its expansion program.(*)