By Kim Hyun-cheol
Staff Reporter

A Korean company has confirmed a huge Indonesian coalmine exploitation project deal.

Inni-Korea Resource Tuesday signed a memorandum of understanding with three Indonesian companies on the exploration of a 50,00-hectare mine area in Kotabaru County, Southern Kalimantan, Indonesian media outlets reported. The mines are believed to contain 3.8 billion tons of coal deposits.

The Korean company agreed on the development of infrastructure and preparation of production in a joint venture with its Indonesian partners, and will invest $50 million in the first phase of the project.

"I am looking forward to the business with the Koreans, and will give full cooperation for mutual objectives," said Jimmy Makaenas, chairman of Tri Agape, one of the Indonesian partners at the signing ceremony.

The Indonesian government also fledged its full support for the project. Ir. Yus'an, Vice President of the Investment Coordinating Board of Indonesia, said he hopes the project will create many local jobs and benefit both countries.

Both parties also agreed to an eco-friendly exploitation principle. Part of the profits from the project will be used in aiding financially troubled local residents, the company added.

South Korea imported some 84 million tons of coal last year. Indonesia accounted for 20 percent of imports, the second biggest coal exporter to Korea after Australia with 33 percent.

hckim@koreatimes.co.kr