Australian coal firm to set up factory in C. Kalimantan

Palangka Raya, Central Kalimantan (ANTARA News) - PT Lahai Coal, BHP Biliton`s subsidiary based in Kalimantan, said it will invest US$50 million in construction of a coal factory in Muara Teweh, Central Kalimantan, a spokesperson said.

"The coal factory will be built on 4,787 hectares of land. Hopefully, it will begin producing coal in the last quarter of this year," PT Lahai Coal director Indra Diannanjaya said here at the weekend.

The factory would have an initial production capacity of 720,000 tons to 1 million tons per year, he said.

The factory would be built in Haju Block in Maruai I and Maruai II villages in Laung Tuhup district.

Based on the contract of work, PT Lahai Coal`s initial concession area covered 46,620 hectares, part of which is located in Barito Utara district.

Indra said his office had conducted a feasibility study and intensive exploration activities since 2000 before deciding to enter the construction phase.

BJP Biliton claimed it had spent $77 million on the feasibility study and exploitation activities as well as on community development programs in Central Kalimantan and East Kalimantan.

He predicted that the block holds coal deposits of 4 million tons consisting of cooking coal and thermal coal.

"We will produce the two kinds of coal with a composition of 60 percent of cooking coal and 40 percent of thermal coal. The coal will be exported to France, Italy, Japan, Korea, and Thailand, among others," he said.

PT Lahai Coal will transport coal products either by land or river, namely Barito river using barges from Muara Tuhup port to the offshore port.