Adaro targets Balangan project to start producing this year

By Romel S. Gurky

IDX-listed coal mining giant PT Adaro Energy Tbk projects its Balangan coal project in Balangan regency, South Kalimantan to start production this year.

In its 2013 annual report released on Thursday, the firm said it had built infrastructures such as hauling roads, bridges and completed land acquisition, ground and initial surface works last year.

PT Sapta Indra Sejati as the contractor of the mining construction of the project, started pre-stripping works at the Balangan project early this year, according to the firm.

Adaro acquired the Balongan coal project in 2013 by purchasing a 75 percent stake in the project from PT Semesta Centramas, PT Paramitha Cipta Sarana, PT Laskar Semesta Alam.

The Balangan mine is estimated to hold 172.3 million tons of JORC coal reserves as of 2012 with a calorific value of 4,400 kcal/kg and characteristics similar to those of Envirocoal, Adaro?s prime coal product, that is having low contents of pollutants. The Balangan coal project, located 11 km southeast of Adaro Indonesia?s concession, covers an area of 7,500 ha.

Editing by Johannes Simbolon