Banpu's Jorong Barutama targets 2 millions tons of output this year

Coal mining company Jorong Barutama Greston, a 95 percent subsidiary of Thai's Banpu Plc, expects to produce 2 million tons of coal this year from its coalmine operation in South Kalimantan.

Banpu said in its website that the Indonesian subsidiary, which produced about 1 million tons of coal last year, was expected to further increase its coal production to 3 million tons in 2002.

Jorong has an estimated coal reserves of 45 million tons in its Kalimantan coal mines, according to the report in the website.

The company said that its coal mining concession in Mumpun Pandan, southern part of Sumatra was expected to commence production in 2003, with the output of 500,000 tons of coal per annum.

The output from the Mumpun pandan, with estimated coal reserves of about18.5 million tons, is expected to increase by two folds in the following year.

Banpu Plc, in cooperation with local firm PT Centralink Wisesa International recently took over Indocoal, a coalmine holding company formerly owned by the Salim Group, from the Indonesian Bank Restructuring Agency (IBRA).

Indocoal, which comprises of two producing companies and two exploration companies, was taken over for US$ 45.5 million. The acquisition gave the company a control over another 5 million tons of coal production annually and additional reserve of 182.5 million tons. (alex)