Two Chinese investors eye Ombilin coal mine

Two investors from China, Xuzhou Coal Mining and CMC, have expressed keen interest to operate the Ombilin coal mine in West Sumatra, which is currently owned and operated by state owned PT Tambang Bukit Asam (PTBA), Bisnis Indonesia reported on Wednesday.

Sai Sohar, PT BA?s corporate secretary, said that CMC would soon send its experts to carry out survey, which would last for about one month. The proposal for the development of the Ombilin coal mine is expected to be submitted to PT BA in three months after the survey.

"We hope, the cooperation with the Chinese companies will be able to increase production at the Ombilin I to between 200,000 tons and 300,000 tons a year," he said, adding that the development of Ombilin II and Ombilin III is also expected to gradually increase the total production to one million tons a year.

According to him, PTBA hoped that the Chinese companies known for their experience in the development of underground coal mining activities would be able to join in the development of the Ombilin coal mine.

He said that the low-cost of the Chinese technology was also expected to be able to cut mining cost. "Besides, China also wants to face risk in investing in Indonesia, while companies from other countries are not," he said of the reason why PTBA wanted to cooperate with the Chinese companies. (*)