Bukit Asam gets permit to build railway

PT Tambang Batubara Bukit Asam Tbk, an Indonesian coal producer, won a permit to build a $1.06 billion railway on Sumatra island with a capacity to transport 20 million metric tons of coal a year.
Bukit Asam and its partners may seek loans from Chinese lenders to finance 70 percent of the project and the rest will be from internal cash.
The railway project will enable Bukit Asam to tap the bulk of the company' s coal reserves on Sumatra island, boosting its annual output.
Bukit Asam will form a venture with PT Transpacific Railway Infrastructure and China Railway Engineering Corp. to build the railway. Bukit Asam and China Railway will each hold 10 percent of the venture, while Transpacific will own 80 percent.