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Wednesday, 25 August 10
INDIAS ADANI GROUP TO BUILD COAL RAILWAY IN INDONESIA


COALspot.com:
India’s Adani Group, Indonesia’s state coal producer PT Tambang Batubara Bukit Asam (PTBA), and the South Sumatra provincial government agreed to build a coal railway in the province, the Indonesian Investment Coordinating Board said, media report says.

The construction of railway is planning to transport PTBA’s coal to Tanjung Api-Api barge loading port. Bukit Asam is planning to open an new coal mine and the coal frorm that mine will be transported by the railway to be constructed by Adani, sources said. The railway line will cover around 270-kilometer that will link PTBA's new mine in South Sumatra, to Tanjung Api- Api port. Currently, the Tanjung Api-Api port is a barge loading port,

As quoted by Bloomberg, the Indonesian Investment Coordinating Board said that, Adani, through its local unit PT Adani Global, may invest $1.6 billion in the project, which includes building a coal terminal with an annual capacity of 50 million tons. The construction of the 270-kilometer railway is expected to start next year with completion by 2013. However, the information about start date of construction of Bukit Asam’s  new mine is not available.

Bukit Asam has no share in Railway project. The Bukit Asam will pay freight to Adani as railway operator to transport the coal that produced in its mine. Adani will also have priority to buy part of cargo that, to be transported by railway to Tanjung Api Api port.

In addition to this new developments, Bukit Asam already joint ventured with Chinese company  to upgrade its existing railway to increase the volume  and build a new coal terminal to accommodate bigger vessels.

India’s  Lanco has partnered with Indonesian coal mining company Bukit Asam, and PAMA, a leading coal mining contractor in Indonesia to bid 2X300 megawatt power project. PT PLN has sought bids to develop the coal-based power project in Riau, southern Sumatra on a build-own-and-operate model. The coal for power plant will be supplied by PTBA’s sole owned coal mine in Riau, sources said.

India’s Reliance Power (RPower), is looking to invest about $5 billion for developing coal mines in Indonesia  “The company plans to build a 230 km long railway that will link its coal production base in Batang Hari to a port, which it will also build,” was quoted by Bloomberg in a report on Tuesday.

MEC is to build a 130-kilometre-long railway in East Kalimantan and Itochu Corp of Japan will invest about $2 billion to build a railway to transport coal in Indonesia's Central Kalimantan. MEC, has a coal mine project in East Kalimantan and is investing $5.2 billion in infrastructure including a smelter, railway and power plant. If all the railway and port projects materialized, then Indonesian will receive more than US$ 12 billion investment within two years.



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