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)