Saturday, April 17, 2010

Adaro (JK:ADRO) Coal Railway Deal

Indonesian Coal Railway

The largest coal producer in Indonesia, PT Adaro Energy Tbk (JK:ADRO), will make a bid for a tender for a $1.5 billion railway project which will allow coal to be transported in Kalimantan.

The coal railway would be 115 miles long and connect Puruk Cahu to Bangkuang in Central Kalimantan.

There are approximately 4.8 billion tons of coal reserves in the central part of Kalimantan, and this will be the first of four proposed railway projects ultimately expected to be a length of 1,136 miles, linking ports with coal mines.

Others interested in investing in the coal railway are Itochu Corp and China Harbour Engineering Co.

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