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T Bukit Asam (PTBA) says that the construction of railroad tracks between its coal mine and ports will be completed on schedule despite land acquisition problems.

The state coal mining company’s president director, Sukrisno, said in Jakarta on Monday that popular resistance that has emerged during the land acquisition process might affect the progress of the rail project, which was intended connect PTBA’s Tanjung Enim coal mine, the Tanjung Api Api port in South Sumatra and the Tarahan coal terminal in Lampung .

Sukrisno said that PTBA had taken all necessary measures to ensure that the railway project would be finished on time.

“We’ve cooperated with local administrations and have spoken heart to heart with the people living in the affected areas,” he told members of the House of Representatives’ Commission VII overseeing energy and mining at a hearing on Monday.

“We believe that solutions will be found in the near future,” he added.

Local residents did not want to move to alternative lands provided by local administrations out of fear of losing their incomes and livelihoods, Sukrisno said.

PTBA would attempt to help the residents create alternative sources of income after they were relocated to the alternate sites, he said.

“We’ll work together with local administrations to build not only their new homes, but also their livelihoods,” Sukrisno said.

Poor transportation infrastructure has hampered the company, Sukrisno said, adding that PTBA currently relies on state owned railway operator PT Kereta Api’s tracks to transport coal from its mine to its terminal in Lampung.

To solve the problem, PTBA is building a 307-kilometer railway linking its Tanjung Enim coal mine and the Tanjung Api Api port in South Sumatra.

Construction of the US$1.65 billion project will start in March.

The railway will be able to transport 35 million tons of coal a year when finished in 2014.

PTBA is also building a new stretch of track between the company’s coal mine and the Tarahan terminal.

Sukrisno said that PTBA has allocated Rp 1.8 trillion ($199.8 million) for capital expenditures in 2011 to boost production to 17.6 million tons this year, a 34 percent increase from 13.1 million tons in 2010.

The company also plans to increase sales by 31 percent to 16.9 tons in 2011, up from 12.9 million tons in 2010.

“We’ll use the budget for acquisitions, building new infrastructure and operational costs,” PTBA corporate secretary Achmad Sudarto said.

Achmad said that PTBA would acquire two coal mining companies in 2011, declining to reveal the companies’ names or locations.

“We want to be the majority shareholder in the two companies by acquiring more than 51 percent stake,” he told reporters after the hearing.

PTBA is a publicly listed state-owned companies. The government owns 65 percent of the company’s stake, while the remaining 35 percent is owned by the public.