Aries mine to supply coal to India?s Salaya power plant
Thursday, August 16 2012 - 01:40 AM WIB
India-focused energy firm Essar Energy expects its Aries mine in West Kutai region of East Kalimantan would soon supply coal to fuel the company?s 1,200 MW Salaya I power plant in Gujarat.
?The first coal is now expected within next 12 months,? the company said in its statement.
It said that the construction of supporting road and port infrastructure in Aries mines was underway.
?Until coal can be supplied from the Aries mine, Salaya I will be supplied with fuel under a contract with Essar Shipping and Logistics Limited, Cyprus,? it said, adding that the company was still looking for regulatory approvals from Indian Government for the coal import jetty near to the power project.
Alternative temporary arrangements have been made to import coal from other nearby ports and for onward delivery by road to the Salaya site.
Essar Energy acquired a 100 percent interest in the Aries coal mine in April 2010 for $118 million.
A Joint Ore Reserves Committee (JORC) compliant resource assessment estimates that the block contains approximately 64 million tons of mineable reserves with an annual potential production of 4 million tons.
Editing by Adianto P. Simamora