PT Bukit Asam to build coal upgrading facility
PT Bukit Asam to build coal upgrading facility
JAKARTA (JP): The state-owned coal mining company PT Tambang Batubara Bukit Asam plans to build a coal upgrading facility at its mining area in Tanjung Enim, South Sumatra, an executive says.
Technical Director A.C. Purba said here yesterday the up- grading plant will improve low-quality coal to make it fit for various consumer purposes and exports.
Purba said the construction of the plant will be done jointly with Mapco Inc. of the United States and PT Panca Sahabat Abadi, a local firm. The deal was signed last month by Bukit Asam president R.A. Sunardi, Mapco director Wayne Goettsche and Panca Sahabat president Nasrun Syahrun.
Purba was quoted by Antara as saying that coal processed by Bukit Asam, which came from surrounding regions, was of low quality since 69 percent of it consisted of lignite coal.
This type of coal, he said, has a low calorific value and high water content, making it less popular for consumer usage.
Coal from Bukit Asam produces an average of 5,000 kilo- calories per ton, compared to that from Kalimantan which produces 6,500 kilo-calories, making it fit for export.
Bukit Asam coal is currently used to operate power generators in the region, including a steam power plant located at the mouth of the Bukit Asam mine, and is also sold to the state electricity company PT PLN for its Suralaya steam power plant in West Java.
Purba said the deal with Mapco and Panca Sahabat also included exploring the possibility of constructing a railway between Tanjung Enim and the Tanjung Api-api coal port on the eastern coast of Sumatra, about 70 km east of Palembang.
The deal also covered a feasibility study on mines in the South and Central Banko regions.
Coal mining in both locations, Purba said, will be integrated with the power plant at the mouth of the Bukit Asam mine and connected to the undersea power transmission cables leading to Java.
Purba said Bukit Asam's plans were made to anticipate increasing demand for coal, both from the domestic and export markets.
The role of coal as a source of primary energy in Indonesia has shown a steady increase, particularly for power generation.
A seminar on energy demand last year stated that in the beginning of the Sixth Five Year Development Plan (Repelita VI) -- which started in 1994 -- coal made up 16.4 percent of Indonesia's total power-generating capacity, which reached 13,000 megawatts (MW).
By the end of Repelita VIII in the year 2009, the demand for coal will have increased to 28.4 percent of the total generation capacity, which will have reached 50,772 MW.
The export markets of Japan, South Korea, Taiwan and Hong Kong are expected to experience an increase in coal demand from 109 million tons in 1995 to 183.4 million tons in the year 2003.
Last year Bukit Asam produced 8.16 million tons of coal and recorded Rp 542 billion (US$235.65 million) in revenues.
Last year's production was 20 percent higher than the 6.7 million tons produced in 1994 and exceeded the 7.33 million ton- target set for 1995. (pwn)