Trafigura, Titan Group to unlock coal potential in South Sumatra

By Tri Subhki R

Trafigura, a global trading company, and Titan Group are expected to unlock coal potential in South Sumatra after completing construction of a110-kilometer coal hauling road in the province this year.

Titan and Trafigura acquired the coal hauling road project from IDX-listed coal giant PT Adaro Energy Tbk in early 2014 and has been developing the road since then. Titan holds 60 percent of ownership on the project and Trafigura owns 40 percent.

"Our vision is to connect the (coal) source and demand. The project in South Sumatra is one of our largest projects as a group in terms of investment," Trafigura's Chairman Bob Kamandanu said to Petromindo.com

Bob added that the hauling road will help local government tackling safety concern regarding coal transportation that for years has been using public roads.

Bob also said that Servo hauling road will unlock hundreds of unexploited coal mines along the way from Lahat to Musi River.

Editing by Reiner Simanjuntak