Large coal terminal to be built in S. Kalimantan

Large coal terminal to be built in S. Kalimantan

JAKARTA (JP): PT Indonesia Bulk Terminal (IBT) signed here
yesterday agreements for US$80 million in secured loans from
National Australia Bank Ltd. and Banque National de Paris for
financing a 10 million-ton capacity coal terminal at Pulau Laut,
South Kalimantan, and the construction of the terminal.

The contract for the first stage of construction of the
terminal, which is scheduled to start operations in 1997, was
awarded on a turnkey basis to Bilfinger & Berger of Germany.

"The Pulau Laut coal terminal will provide coal mines with an
international standard handling facility to ensure efficient and
reliable delivery of coal to consumers," noted Hashim S.
Djojohadikusumo, chief commissioner of IBT at the contract
signing.

IBT is a joint venture company between Consolidated Bulk
Handling Pty. Ltd of Australia with 50 percent and three
Indonesian companies-- PT Tritamas Majutama, PT Swabara Bumi and
PT Dermaga Batu Perkasa.

Tirtamas, which is controlled by Hashim, a son of senior
economist Sumitro Djojohadikusumo, is the major shareholder in PT
Semen Cibinong and a shareholder in PT Adaro Indonesia, a major
coal producer in South Kalimantan.

Swabara is a shareholder in PT Multi Harapan Utama, a coal
producer in East Kalimantan and PT Adaro Indonesia, while PT
Dermaga is a subsidiary of PT Catur Yasa which is a shareholder
in the Paiton coal-fired power project in East Java.

Subsidiary

Consolidated Bulk Handling is a wholly-owned subsidiary of New
Hope Corp. Ltd., a diversified Australian mining and resources
group.

After completion of the first stage of development, the Pulau
Laut terminal will offer bulk handling of coal, coal blending and
stockpiling, quality control and pooling or partial loading
services for smaller mine operators.

The port will have a loading berth capable of serving vessels
of up to 100,000 deadweight tons and another one, to be developed
in the second stage, with the capacity to berth vessels of up to
200,000 dead weight tons.

IBT's president Graeme Robertson noted that the terminal has a
bright future as the demand growth for steam coal in Asia over
the next 10 to 15 years will be huge and more than 70 percent of
the coal demand will be for fueling new power generating
stations.

Another benefit of the terminal is that it also will handle
other bulk commodities, thereby contributing to the growth of
regional economic development in the eastern provinces.

IBT will operate the terminal under a build, operate and
transfer agreement with state-owned PT Pelabuhan Indonesia III,
for a period of 30 years subject to two 10-year extensions.

The first major customer of the terminal will be PT Adaro
itself which is being developed to become the largest coal mining
operation in Indonesia. Its annual production capacity of 7.5
million tons is being expanded to reach 20 million tons by the
year 2000.(vin)