UBC Indonesia starts to construct upgrading coal plant in S. Kalimantan
Friday, May 25 2007 - 01:50 AM WIB
PT UBC Indonesia started to build an upgrading brown coal (UBC) plant valued at US$45 million or around Rp 500 billion in Satui, South Kalimantan on Thursday.
The plant that will upgrade low calorific value coal to more than 6,000 Kcal/kg and has a capacity of 1,000 tons per day is expected to start operation in August 2008.
The construction of UBC plant in Satui is the realization of a cooperation agreement between Japan represented by Japan Energy Coal Center (JCcoal), Kobe Steel Group (KOBELCO), The Ministry of Energy and Mineral Resources representing Indonesia, and South Kalimantan coal miner PT Arutmin, head for research and development division at the ministry of the energy and mineral resources Nenny Sri Utami said prior to laying the cornerstone in Banjarmasin, South Kalimantan.
According to Nenny, there has been a growing interest in building UBC plant for commercial purposes, with the construction of the one in Satui as a start and in this way, the commercial production target of 1.7 million tons can be met in 2010.
Out of the total investment of $45 million, 50 percent will be shouldered by Japan’s Ministry of Economy, Trade and Industry (METI) through JCoal and the balanced will be paid equally by KOBELCO and Arutmin, Arutmin director Kazuya Tanaka said on Sept 2006. (*)