ATPK probing CBM development in Berau

By Hiski Darmayana

IDX-listed PT ATPK Resources Tbk is sounding out the possibility of developing coal-bed methane (CBM) with other companies in East Kalimantan.

The company is currently conducting a mapping of its concession and other concessions belonging to other firms which have mining licenses (IUP) in Berau regency of East Kalimantan, in order to find out the potentials. before starting the CBM development.

?CBM development needs a large area of mining concession. Our concession is only at the size of about 3,000 hectares. So, we need to cooperate with other concessionaires to make our total area amounting to 10,000 hectares for the CBM development,? the company?s Director Albert Bangun told Petromindo.com in Jakarta on Tuesday.

But he said that his company is still facing several problems in developing the CBM. ?The problems are concerned with financing and marketing of the CBM gas. We?re still in a process of solving the problems,? he said.

ATPK has a coal concession in Berau regency of East Kalimantan at the size of 3,274 hectares, which are managed by its subsidiary PT Mega Alam Sejahtera (MAS). This year, the company has targeted to produce 1,5 million tons of coal. During the first quarter this year, it has managed to produce up to 620,000 tons.

?We sell all of our coal production to traders, who then sell them to India,? said Albert.

Editing by Benget Besalicto Tnb