Russian investor interested in Ombilin II and III coal mines

A Russian mining company has expressed its interest in converting potential coal into gas at Ombilin II and III coal mines in Sawahlunto, West Sumatra, the Bisnis Indonesia newspaper reported in its Saturday edition.

The company is currently studying the geographical condition of the two mining areas, which are owned by PT BA UPO.

PT Bukit Asam Unit Penambangan Ombilin (PT BA UPO) general manager Mustav Sjab said in Sawahlunto that the Russian company?s representative is already in Indonesia to implement his company?s plan and submitted the proposal to Sawahlunto authorities.

Mustav said his company offered Ombilin II and III mining areas to the Russian company because there are huge potential coal deposits in those areas.

Mustav said the Russian company will not mine for coal but it will convert coal into gas in underground. ?They (Russian company) will Underground Coal Gasification (UCG) system,? he said.

The paper didn?t mention the name of the Russian company