Banpu to complete underground mining FS year-end

PT Indo Tambangraya Megah (ITM), Indonesian unit of Thai energy conglomerate Banpu PCL, said it would complete feasibility study of underground mining in its East Kalimantan coal mine PT Indominco Mandiri by year-end.

ITM Director Pongsak Thongampai told Petromindo.Com on Sunday that the company is teaming up with Polish mining company Kopex SA undertake the FS on a prospect called Seam 13.

Pangsak said the FS included trial mining operations to understand the mine?s costing.

Should the study proved feasible, ITM will appoint Kopex as mining contractor and consultant, he said.

He did not give about the volume of coal the company planned to produce from the underground project. ?Seam 13 is the first (underground) project. Should it proven to be commercial, Indominco has a lot of coal to mine by underground method,? he said.

ITM, which is listed at the Indonesia Stock Exchange, is one of the country?s to coal producer with planned of around 20 million tones this year from its Kalimantan coal mines. (alex)