Altura hopes to start Tabalong coal mine production in 2012

ASX-listed mining firm Altura Mining Limited plans to start high CV coal production from its Tabalong mine in East Kalimantan early next year provided that it would be able to secure all necessary permits.

The company said in a presentation released on Monday that production target from the mine will be 500,000-750,000 tonnes per annum.

Mining will be conducted by open-pit method and coal will be transported through a 110-km haul road to Barito River in Central Kalimantan.

The company said it will require capital expenditure of less than US$10 million to start operations.

The company is eyeing selling price of $100 per tonne with on-barge cost of $65 per tonne for its raw coal.

Altura owns 100 percent shares of PT Suryaraya Cahaya Cemerlang, which operates the mine, which is divided into two blocks with total area of 5,000 hectares.

According to the company, Block A has JORC resource of 13.4 million tonnes of high CV and low sulfur coal and is targeting resource of 7 million tonnes for block B. The company plans to drill Block B in the fourth quarter of this year. (alex)