Altura sees S. Kalimantan high CV coal project to produce 1.5MTPA

By Alexander Ginting

ASX-listed mining firm Altura Mining Limited reported that it has received Operation and Production Permit for three out of its five mining licenses in Tabalong coal project and expects to receive permit for the other two soon.

The company said on Friday that the approval will pave way for production decision with initial rate of 500,000 TPA, ramping up to 1.5 million tons per annum (MTPA) blend of thermal and metallurgical coals. The company, however, did not say when production will start.

The Tabalong project which is located in South Kalimantan, covers 5 production licences (IUPs) namely Suryaraya Permata Khatulistiwa, Suryaraya Cahaya Cemerlang, Suryaraya Pusaka, Kodio Multicom and Marangkayu Bara Makarti..

Altura has 70 percent stake in the project with undisclosed local partner holding the balance.

The IUPs cover 17,000 hectares, targeting high energy coals with exploration highlighting significant potential for PCI and metallurgical coal products.

The company said operation strategy for Tabalong is low capital intensity, low operating cost and straightforward pathway to market via third party infrastructure.

Beside Tabalong, the company has 33 percent interest in Delta coal project in East Kalimantan, which has been producing since 2004. Currently, Delta is producing 1.75MTPA of 5,600 kcal/kg (ADB) coal and the company said the plan is to increase production to 2MTPA.

Editing by Reiner Simanjuntak