Banpu may produce 1-2 MTPA from underground mine in 2010

IDX-listed coal-mining group PT.Indo Tambangraya Megah Tbk (ITM) may produce 1-2 million tonnes per annum from its underground mine in East Kalimantan in 2010.

CEO Somyot Ruchirawat told reporters on Wednesday that the mine, which is located in the western block area of its East Kalimantan subsidiary PT.Indominco Mandiri will start trial operations in 2009.

?If the trial mine runs smoothly for one year, we?ll proceed to conduct underground mining with capacity of 1-2 MTPA,? Somyot said, adding that during the trial, the mine will produce around 200,000 tonnes of high CV coal that would be used for blending.

Somyot said the underground mine has mineable reserves of around 20 million tonnes

ITM said in a presentation made available to the IDX on Friday that said it was now in the process of recruiting underground mine experts and procuring equipments.

ITM is a subsidiary of Thai energy conglomerate Banpu PCL. (denny)