S. Sumatra?s revenue from coal royalty to increase by 300%

The royalties received by South Sumatra provincial administration from coal production in the province may increase by 300 percent within the next few years from about Rp 36 billion due to the expected increase in the future coal production, Investor Daily reported on Friday.

South Sumatra, with total coal reserves of about 600 million tons at present, is capable of producing 28.43 million tons of coal a year for 20 years, as compared to about 9.55 million tons at present.

The bright prospect of the future coal production was unveiled during a meeting between Governor Syahrial Oesman and a consortium of Transcoal Nusantara and PT Trimitra Adiyasa in Palembang on Thursday.

The consortium is conducting a feasibility study of developing a coal terminal in the Bangka strait for the transportation of coal from the province to either local and overseas buyers.

At present, the main coal producer in the province PT Batubara Bukit Asam transports its coal by train to a coal terminal in Tarakan, Lampung before the company ships the coal to its buyers. (*)