Kobe Steel Start Building Coal Upgrade Plant in Indonesia

Kobe Steel, Ltd. announces the start of construction of a large-scale, 600-ton-per-day demonstration plant in Indonesia to upgrade brown coal into higher quality coal for use in power generation.

On May 24, a groundbreaking ceremony will be held at the Satui coal mine in southeastern Kalimantan, Indonesia. Plans call for the plant to begin trial operation in October 2008. Total investments in the project are forecast to reach about 8 billion yen.

From Japan, officials from Kobe Steel, JCOAL, and the Ministry of Economic Trade and Industry will attend the groundbreaking. Representing Indonesia will be the Ministry of Energy and Mineral Resources as well as other officials.

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