Bangun Banua to limit coal production at 400,000t

By Thomas Sembiring

Petromindo|Khalsa

South Kalimantan coal miner PT Bangun Banua Persada Kalimantan will only produce 400,000 tons of coal this year as the mine?s economical reserves are set to deplete.

This was said by Fentony Sudjono, a director at the company to Petromindo.com recently. He did not provide comparative figure of last year?s coal production.

Bangun Banua recently signed amendment of this third generation coal contract of work (PKP2B) with the government. Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono said that although the company?s coal reserves are slated to deplete, the mining contract amendment was necessary in connection with the company?s post-mining obligations.

According to the 2016/2017 Indonesia Coal Book, published by Petromindo, PT Bangun Banua Persada Kalimantan (BBPK) signed a third-generation PKP2B with the government in October 1999 to develop a 6,960-ha coal concession (KW.98STBCB4) in South Kalimantan Province. After obtaining the government?s approval for its feasibility study, BBPK started the construction of mining facilities in 2001 and subsequently, in 2003, obtained a trial production permit from the government to produce bulk sampling. The company finally secured a 30-year exploitation license in the following year, effective from the commencement date of commercial production on November 6, 2004 through November 5, 2034. BBPK?s coal production in 2014 reached 218,561 tons, representing a 62 percent decrease from the production level of 575,148 tons in the previous year.

Editing by Reiner Simanjuntak