RMKO, Atlas to develop Sumatra coal crushing plant

Indonesian coal mining contractor RMKO has partnered with domestic producer Atlas Resources to develop a coal crushing plant and other supporting mining infrastructure in south Sumatra.

The crushing plant and other facilities are targeted for completion by the second half of this year, said RMKO, which is a subsidiary of coal logistics firm RMK.

The plant will be built at Atlas' Mutara hub, which consists of five separate concessions in the Musi Rawas and Musi Banyuasin regency in south Sumatra and has coal reserves totalling 85mn t.

Atlas has already acquired a road construction permit that will connect Mutara to the Sriwijaya Bara logistics jetty 137km away. The coal crushing plant is expected to boost coal transportation from mines to clients outside the region, the company said.

RMKO will construct and operate the coal crushing plant that will have a capacity of 650 t/hr. Other services will include stockpile management, loading services and plant maintenance.

The 36bn rupiah ($2.28mn) plant will be funded by RMK with Atlas paying back the investment through coal production equivalent to 200,000 t/month for five years, as well as the cost of operations and maintenance services, RMKO said.

By Antonio delos Reyes