ATPK to start mining, stop using contractor by end of December

By Hiski Darmayana

IDX-listed coal producer PT ATPK Resources Tbk will start the mining works in its concession on its own, without the help of contractor, by the end of the year.

The company is now finalizing the purchase of all the equipment belonging to contractor PT Pasific Prima Coal (PPC) that have previously been used in the project.

?The transaction to purchase PPC's equipment in our concession will be finalized later this December. This is to comply with existing regulations obliging IUP license holder to do mining works without the help of contractor," said Director Albert Bangun during a gathering on Friday.

?The funding will come from Rights Issue ll with total proceeds of Rp.46.9 billion," he added.

The company owns a coal concession in Berau, East Kalimantan, totaling 3,274 hectares. Since 2009, the company has hired PPC as its contractor in the project.

This year, production is estimated to reach 1.8 million tons of coal. The company has targeted production to hit 3 million tons next year.

Editing by Reiner Simanjuntak