South Kalimantan expects to have coal canal end of 2001

South Kalimantan expects to have already completed the development of a coal canal in the Banua Lima area, equipped with a 10 million-ton coal capacity terminal, according to head of the province?s investment office (BKPMD) Armain Janit.

Armain was quoted by the local Banjarmasin Post daily as saying that feasibility study of the Rp 75 billion project had been completed.

He said that the development of the canal would greatly reduce coal transportation through public highways, which had been the center of protest by villagers and environmental groupings. He added that the canal would also help develop the province?s coal mining potential as transportation problem would have been resolved.

He was optimistic that huge coal mining companies in the province would use the canal to transport their coal.

Armain said that BKPMD would soon invite potential investors to form a joint consortium with a number of state enterprises to develop the canal.

He declined to reveal the exact location of the canal, but said that the 25-Km long and 30-meter wide canal would pass through the Tanjung Putting area, Sungai Negara river, and Sungai Barito river. He added that the particular area had some 1.2 billion in coal deposits.(*)