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Significant investment in Indonesian coal sector

World Coal,

PT Berau Coal Energy (BRAU) has announced plans to invest up to US$ 300 million to increase production capacity and build a new power plant.

The investment would result in the construction of a conveyer belt and power plant, according to the company’s director, Eko Santoso Budianto.

The conveyor belt would be installed at Berau’s minesite, Binungan coal mine. The new power plant would have two generator units each with a capacity of 20 MW.

Berau Coal expects to produce 34 million t of coal by 2017.  Despite a decline in coal prices from US$ 78/t to US$ 60/t, the company would still go forward with the investment.  The company expects this year's production to reach 23.5 t.

Eko suggested that conditions would improve in the next two to three years, adding that “when the projects are done, [I] hope prices will be at equilibrium.”

Berau Coal currently operates three mining sites in East Kalimantan – Lati, Binungan and Sambarata – over an area of approximately 118,400 ha.

Adapted from press release by Katie Woodward

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