Ancora coal unit to triple production next year

East Kalimantan coal miner PT Raja Kutai Baru Makmur (RKBM) is expecting to boost its low-rank coal output to 3 million tonnes of coal next year, from this year?s target only around 1 million tonnes, the company?s official told Petromindo.com.

?Before year end, we will be able to produce around 250,000 tonnes per month,? the official said.

The company has hired two more local contractors to boost its coal output. At present the company has two local contractors namely PT Hareda and PT Prima Sarana Gemilang.

The company is still open for potential new buyers either in spot or term. So far, there are three buyers requesting to secure coal supply deal but none is final yet, the official said.

The coal calorific value from the mine varies between 5,500-5,000 kcal/kg (ADB) with total maximum moisture of 42%.

Raja Kutai operates a 8,500-hectare coal mine concession area in Kutai Kartanegara regency. Only about 550 hectares of the mining area have been opened up with mineable reserve of around 20 million tonnes, the sources said.

RKBM is owned by Indonesian listed firm PT Ancora Indonesia Resources Tbk with 58 percent stake. (denny)