REFILE-Indonesia Hanson Energy plans $400 mln coal conveyor
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JAKARTA, Sept 10 (Reuters) - Indonesian energy firm, PT Hanson Energy, plans to invest about $400 million building a conveyor to transport coal production from its mining sites in South Sumatra, a company director said on Monday.
Hanson Energy is an affiliate of Hanson International (MYRX.JK), which is involved in textiles.
The conveyor, which could be built by the middle of 2009, would have a capacity to transport 10 million tonnes of coal per year for delivery to supply power monopoly Perusahaan Listrik Negara (PLN) in Lampung or Java.
"We are discussing the conveyor with a German company. We have got a letter of interest already and are open to other sources of funding," Harun Setiawan Boedi told Reuters.
The firm has two coal mining sites in South Sumatra with estimated reserves up to 400 million tonnes.
Indonesia's coal production this year is expected to rise around 10 percent to between 213-214 million tonnes, according to data from the Indonesian Coal Mining Association.
Data from the mines and energy ministry estimates Indonesia has nearly 39 billion tonnes of coal deposits.
Indonesia, Asia-Pacific's only OPEC member, is tapping alternative sources of energy such as coal and natural gas to meet rising power demand and to cut down on consumption of expensive crude oil as its reserves dwindle.
Indonesian officials have said domestic electricity demand is increasing at around 10 percent a year.
