Bara Pramulya to start coal production in 2008

South Kalimantan coal miner PT.Bara Pramulya Abadi (BPA) will enter construction stage soon and expects production could commence in the second quarter of 2008, a company official said.

Company Advisor Surkasah Sapari told Petromindo.Com on Friday that the mine would produce 1 MTPA in the first years of production.

Sapari said the mine would commence with production of coal with CV value of 6,000 Kcal/kg and above. He added that the mine also has reserves of 5,000-5,300Kcal coal but further exploration is needed to before mining could commence. Coal would be produced from the Tanjung Block, with coal reserves of 10 million tonnes, he said.

According to Sapari the company is now in talks to sell its coal production to nearby miners including Interex Sacra to avoid constructing 50-km hauling road to Adang port. “Constructing 50-km haul road would mean substantial increase in investment and it would be more economical to sell production to nearby mines,” he said. Other mines that are located close to BPA are Adaro Indonesia and Kideco Jaya Agung.

Mining operations would be conducted by contractor and the company is now in talks with several candidates, he said.

BPA is a third generation Coal Contract of Work (CCOW) holder, controlling 20,000 hectares of concession in Tabalong regency. (denny)