AGM to increase 2013 coal output to 5-6m tons

By Edgar Subroto

South Kalimantan coal miner PT Antang Gunung Meratus (AGM), a coal unit of Baramulti Group, aims to increase output to 5-6 million tons in 2013, compared to the estimated 3.4-4 million tons for this year, a source told Petromindo.com.

With the entry of a new investor from India, Tata Group, the target is likely to be achieved, the source added. The majority of the projected output for next year will be exported to India.

Tata Power, India's largest integrated power company, said that it has acquired a 26 percent stake in Indonesia-listed mining firm PT Baramulti Sukses Sarana Tbk (BSSR) through its 100 percent subsidiary Khopoli Investments Limited (Khopoli).

AGM, a 100 percent subsidiary of the BSSR, and BSSR together own approximately 1 billion tons of coal resources in South and East Kalimantan, Tata said in a statement issued on Nov. 8

Japan-based Idemitsu Kosan Co. Ltd. announced that it has acquired 3 percent share of PT Baramulti Sukses Sarana (BSSR)..

?We are going to proceed to market coal produced in AGM mine which BSSR owns in South Kalimantan, for customers in Japan and other Asian countries,? the company said in a statement recently.

AGM mine, located 100km North East from the city of Banjarmasin produces low sulphur and low ash sub-bituminous coal. AGM mine is planning to produce 7 million tons by the end of 2014, and to further increase after 2015.

AGM's coal has the CV of 4,400 kcal/kg (GAR) with between 0.5 and 0.7% Sulphur content.

Coal from AGM is barged to an intermediate stockpile in Tatakan towards Puting river, leading to Taboneo anchorage.

Editing by Reiner Simanjuntak