Asmin starts C. Kalimantan coking coal production

Coal miner PT. Asmin Koalindo Tuhup had started coking coal production in late 2008 from its Central Kalimantan mine and is looking to produce 50,000 tonnes per month this year.

Commissioner Ken Allan told Petromindo.Com on Tuesday that the company will increase production to 200,000 tonnes per month within the next few years.

Allan said Swiss trading giant Glencore AG will offtake Tuhup?s entire production for six month starting January 2009. ?After that we will review the contract,? he said, adding that Glencore sells Tuhup coal to Japan.

Asmin Koalindo Tuhup is a third generation Coal Contract of Work holder with reserves of 66 million tonnes of coal, which consists of 85 percent coking coal and 15 percent lower CV coal.

Allan said there are strong demand from Japanese market for Tuhup coal. ?We received orders from Japanese buyers from during our recent trip to the country, but we cannot meet the orders now due to production limitation,? he said. (denny)