Bahkti Energi delays coal production until 2015

PT Bhakti Energi Persada (BEP) has decided to delay the commercial production of the company?s coal mine until 2015 from the initial schedule of 2013 due to land acquisition problems, Kontan reported on Saturday.

Jeffrey Mulyono, BEP?s President Director said in Jakarta on Thursday the land acquisition problems had caused a delay in the construction of infrastructure facilities such as haul roads and port.

The company would need to invest at least US$500 million for the development of the infrastructure facilities, he said, adding that the investment requirement would be covered by loans to be obtained from PT Adaro Energy.

?We estimate the commercial production will be delayed until the end of 2014 or early 2015,? he added.

Through its seven subsidiaries, BEP has coal mine concessions covering 33,971 hectares in Muara Wahau, East Kutai, East Kalimantan. PT Telen Eco Coal is the only subsidiary which has obtained a permit for production, as other six subsidiaries are still in exploration stages.

BEP?s total reserves reach 5.6 billion tons, according to Joint Ore Reserves Committee (JORC).(*)