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Batu Arang is a town in Gombak District, Selangor, Malaysia, that is located about 50 km (31 miles) from the capital Kuala Lumpur. Coal was first discovered in the region in 1908, when British authorities found large deposits of coal reserves that could be commercially viable and fuel a railway system. The town was established when the British started mining operations. In 1915, a railway system linking Batu Arang and Kuang was built to transport coal to the rest of the country. As coal output and demand increased, rail services to and from Kuala Lumpur expanded. The demand for coal from Batu Arang skyrocketed due to the First World War, which led to a reduction of coal imports. The local coal was frequently sold to the railway companies, power stations, tin mines, dredges, and end customers.

During World War II, in 1942, British authorities halted mining operations, and destroyed the power station and main sub-station as Japanese forces approached Batu Arang. When the Japanese occupied the area, they repaired the damaged equipment and hired more people to mine coal. Their mining methods, however, have left a devastating effect on the coal mine because they only focused on surface mining. When Japan surrendered at the end of World War II, Malayan Collieries resumed mining but were faced with problems such as improper mining methods by Japanese, delayed delivery for new equipment, labor strikes, fire, floods, increasing costs, rising coal prices and competition from petroleum, which is a cheaper and more attractive fuel. These problems led to the permanent closure of the coal mine on January 30, 1960.

After the closure of the mine, many miners and workers moved out of town and many buildings became ruins, the coal mine filled with water, land faced soil erosion, and the railway line from Kuang was dismantled, effectively ended railway service in Batu Arang. Despite this, some residents remained in the town and shops, facilities, and amenities continue to operate. On October 16, 2011, the town celebrated 100 years since its establishment and was granted heritage town status to boost economic prospects of its residents and make it one of the most important tourist attractions in Selangor.