Thai firm to tap coal deposits in Sumatra

Thai firm to tap coal deposits in Sumatra

JAKARTA (JP): A joint Thailand-Indonesia coal mining project
will soon be initiated in Sinamar, West Sumatra, close to the
Jambi border, and in Mampun Pandan in Jambi.

A meeting aimed at familiarizing local officials with the Thai
contractor, attended by Thai ambassador to Indonesia Kasit
Pyromya and West Sumatra governor Hasan Basri Durin, was held in
Padang, the West Sumatra provincial capital, yesterday.

In the US$38.5 million project, the state-owned coal mining
company Perum Tambang Batubara Bukit Asam (PTBA) will engage the
Thai company Banpu and its Indonesian partner PT Sitrade as
mining contractor in the two locations.

Annual coal production under the joint venture will start at
0.5 million tons in 1996, to gradually increase to two million
tons at full capacity.

Proven coal deposits in the project area are estimated at 200
million tons.

President of PTBA Ambyo S. Mangunwijaya said during the
meeting that Indonesia exported 20 million tons of last year's
coal production of 27 million tons, making it the third biggest
coal exporter in the world. (17)