Indonesia’s largest natural resource firm
PT Bumi Resources Tbk and other coal
producers are increasing production.
Japanese trading house Itochu Corp. is
considering building a railway exclusively
to transport coal on Kalimantan, the
Indonesian part of the island of Borneo,
jointly with the Indonesian government
to support the increasing output.
According to The Nikkei, the country’s
coal production is expected to grow
10% this year from last year to 212 million
metric tons (mt), making Indonesia
the second-largest exporter in the world
after Australia. According to Bumi
Resources, its affiliate PT Kaltim Prima
Coal, the country’s largest coal producer,
plans to boost production 2% this
year over last year to 36 million mt at a
mine located in eastern Kalimantan.
Five Bumi Resources group companies
produced a combined 54 million mt of
coal in 2006, equivalent to 9% of the
global market, and their output is
expected to top 10% this year. PT Adaro
Indonesia is targeting 36 million tons in
2007, up 5% from last year.
Itochu has begun a feasibility study
on a coal transportation railroad, jointly
with the Central Kalimantan provincial
government. Currently, coal mined in
the interior of Kalimantan is trucked
and then shipped by boat, making transportation
costly. The total investment is
expected to be around $300 million.
Itochu targets starting operations in
2013.
PT Kaltim Prima Coal, Indonesia’s largest coal producer, plans to boost production 2% this year.