S. Kalimantan to impose channel fee on coal in June

A channel fee of 20 U.S. cents per ton of coal passing through Barito River in South Kalimantan province would likely be imposed in June this year, when contractor completed works to improve the channel’s transport capacity, an official was quoted by local Daily Banjarmasin Post on Saturday.

The daily quoted PT Bangun Banua president Mediteransyah as saying that the channel was being dredged to the depth of 5 meters lowest water surface (LWS) and 100-meter wide, to enable coal vessels to pass through the river 24 hours a day. Bangun Banua is a South Kalimantan province-owned firm, one of the consortium of investors that are involved in Barito Channel project.

He said currently five dredging vessels were deployed by PT Rukindo-state dredging firm which is one of the consortium members to complete the project by June.

South Kalimantan top mining firm PT Adaro will be most affected by the fee, as all of its coal production would have to pass through the channel before reaching loading points. Adaro plans to produce 28 million tons of coal this year.

Earlier, Adaro administration manager Priyadi told Petromindo.Com that improvement of the Channel transport capacity would enable the company to get higher utilization of its barges. (*)