Asia Energy to start coal production from E. Kalimantan mine

East Kalimantan coal miner PT Asia Energy Indonesia (AEI) plans to start production from its coal mine in the third quarter of the year with initial production of 50,000 tonnes per month.

AEI Director Christian Yaska told Petromindo.Com on Thursday that will be set to reach production capacity of up to 500,000 per month within a year time.

Currently, he said, the company is waiting for exploitation permit clearance from local government.

Christian said all of the mine?s production would be exported to Taiwan. AEI is a unit of Taiwanese trading firm Asia Energy International Corp.

The company said its river jetty would be able to load 270-feet barges.

He said that currently the company is in the process of selecting three contractors to carry out coal mining works.

AEI controls two mining permits covering the area of 22,000 hectares in Paser Penajam Utara regency. Christian said the company would relinquish the bigger part of its concessions and would retain only 4,500 hectares. According to Christian, the company has 75 million tonnes of mineable coal with CV ranges from 5,800-6,500 Kcal/kg. (denny)