Banpu to start production from E. Kalimantan mines in 2010

IDX-listed coal mining firm PT.Indo Tambangraya Megah (ITM) said it will start production of its two mines in East Kalimantan next year with initial combined first year output of 1 million tonnes.

CFO Edward Manurung said Kitadin Embalut mine, which production was stopped in 2006, would resume production with initial output of 500,000 tonnes.

According to Manurung, Kitadin has a total coal resources of 154 million tonnes with CV of between 5,800-6,700Kcal/kg (ADB)

The company ceased operations of Kitadin in 2006 due to land acquisition problem.

Meanwhile CEO Somyot Ruchirawat sad that the company will start production from Bharinto Ekatama mine late next year with initial production of 500,000 tonnes.

Somyot said the mine is now in construction stage.

ITM, a subsidiary of Thai energy conglomerate Banpu PCL plans to produce 20.5 million tonnes of coal this year from its mines in South and East Kalimantan. (denny)