Six mining firms support $2.3 billion railway project

As many as six companies engaged in coal transportation and production have agreed to become the regular users of the US$2.3 billion coal-railway project which will connect Puruk Cahu-Bangkuang-Batanjung in Central Kalimantan, Bisnis Indonesia reported on Friday.

Their commitment to become the regular users of the railway was signed with the presence of Vice President Boediono during the commemoration of the Cooperatives Day which was held in Palangkaraya on Thursday.

The six companies include PT PLN Batubara, PT Krakatau Posco, PT Krakatau National Resources, PT Asmin Koalindo Tuhup, PT Billiton Indonesia/BHP IndoMetCoal, and PT Indika Indonesia Resources.

The President Director of PT Penjaminan Infrastruktur Indonesia (PII), Sinthya Roesly, said that the commitment made by the six companies further strengthened the feasibility of the coal railway project.

PII, which is also called the infrastructure guarantee fund, is the guarantor of the railway project. Sinthya said that the guarantee provided by the agency includes political risk such as the revocation of permits and concession and the change in the regulations. ?The Central Kalimantan provincial administration strongly supports the project. (*)