Bloomberg reported that Kuala Lumpur based MTD Capital Bhd, a builder of toll roads from China to Sri Lanka, will spend USD 100 million in the next five years to build and operate a coal terminal in Indonesia's west Java. The report quoted Mr Yusof Merican head of MTD's Indonesian business as saying that MTD Capital will spend USD 40 million immediately to construct the terminal in Cigading port and the rest over the next five years. He said that the terminal, with a capacity to handle 10 million tonnes of coal a year, will be built in the next 24 months.
Mr Yusof said that MTD wants to tap rising demand for coal in Indonesia and overseas as new power plants are constructed. Thermal coal prices at Australia's Newcastle port, a benchmark for Asia, climbed 13% to a record for a sixth week amid reduced supplies of the fuel. The terminal will receive coal mined on the island of Sumatra.
He said that “It is a good opportunity for miners to increase production. Coal from Sumatra hasn't been tapped because of a lack of infrastructure.”
PT Perusahaan Listrik Negara, Indonesia's state utility, has awarded contracts to build 6,400 MW of coal fired plants in Java out of the total 10,000 MW that the government has ordered by 2011.
Mr Yusof said that the coal receiving terminal being built in the port owned by a unit of PT Krakatau Steel, will initially handle coal mined by PT Bintang Sinomas, MTD's partner.
Mr Yusof said that MTD wants to tap rising demand for coal in Indonesia and overseas as new power plants are constructed. Thermal coal prices at Australia's Newcastle port, a benchmark for Asia, climbed 13% to a record for a sixth week amid reduced supplies of the fuel. The terminal will receive coal mined on the island of Sumatra.
He said that “It is a good opportunity for miners to increase production. Coal from Sumatra hasn't been tapped because of a lack of infrastructure.”
PT Perusahaan Listrik Negara, Indonesia's state utility, has awarded contracts to build 6,400 MW of coal fired plants in Java out of the total 10,000 MW that the government has ordered by 2011.
Mr Yusof said that the coal receiving terminal being built in the port owned by a unit of PT Krakatau Steel, will initially handle coal mined by PT Bintang Sinomas, MTD's partner.