Tanjung Redeb (Antara Bali) - Coal mining company Berau Coal in East Kalimantan said it has set aside US$300 million until 2017 to boost annual production to 34 million tons.
"The fund is used to build conveyor belt and a 2x2 megawatt power plant," the company's Chief Executive Eko Santoso Budianto said here on Friday.
The conveyor belt will be built in the Binungan mine, Eko said, adding the conveyor belt and the power plant will improve efficiency.
Efficiency has to be improved to offset a sharp fall in the price of coal at present, he said.
Currently coal price in international market fell to US$60 per ton from US$78 last year, he said.
He said currently many coal mines mainly in Australia had been forced to stop operation on price fall although demand remain strong.
Construction of the infrastructure will take 2-3 years and coal market is predicted to recover in one or one and a half years.
"Therefore, construction of the project should start as soon as possible, that when the market has fully recovered the infrastructure has been ready for operation to boost production," he said. (*/DWA)
Berau Coal to Invest US$300 Million
Sabtu, 21 September 2013 20:29 WIB
