Indonesian state coal miner PT Tambang Batubara Bukit Asam has said that it plans to increase coal production to 50 mtpa within five to six years thanks to several projects including railway expansion and coal mine acquisitions.
The company will increase its coal transportation by train to 11.6 mtpa this year from 10.3 mt by adding more trains, the company’s president director Sukrisno said, adding that this would help to increase sales.
Bukit Asam has already said it will form a joint venture with state train operator PT Kereta Api Indonesia to upgrade existing rail links from its coal mines to a port on the southern tip of Sumatra. The South Sumatra provincial governor also plans a new rail project estimated to be worth $1B.
Once the new provincial rail link is completed, Bukit Asam will be able to deliver 20 mtpa of coal to a port on the southeast side of Sumatra.
South Sumatra, where Bukit Asam's coal mines are located, has 47 bt of coal reserves, or half of Indonesia's total of 93.4 bt, data from the energy and mines ministry shows.
