Kobe Steel begins trial project in Indonesia

Japanese steelmaker Kobe Steel Ltd. said Wednesday that it began a $70 million trial project in Indonesia to utilize low-grade coal as viable energy source for power generation. A demonstration plant will be set up in fiscal 2007 to process 600 tons of coal per day for two years. The company aims to build a commercial production plant in fiscal 2010. Kobe Steel indicated that it will cooperate with Indonesian natural resources investment firm PT. Bumi Resources Tbk and its subsidiary PT. Arutmin Indonesia to construct and operate the demonstration plant in southern Kalimantan.