Adani Group to Invest $1.6 Billion to Construct Coal Railway in Indonesia

Adani Group, Indonesia’s state coal producer PT Tambang Batubara Bukit Asam, and the South Sumatra provincial government agreed to build a coal railway in the province, the Indonesian Investment Coordinating Board said. 

Adani, through its local unit PT Adani Global, may invest $1.6 billion in the project, which includes building a coal terminal with an annual capacity of 50 million tons, the Investment Coordinating Board Chairman Gita Wirjawan said in Jakarta today. Construction of the 270-kilometer (167.8 miles) railway is expected to start next year with completion by 2013, Wirjawan said. 

India-based Adani has interests in among other things the coal, oil and gas, power generation and logistics businesses, according to its website. Source: Bloomberg