Baramarta seeks to increase coal production, mulls underground mining

South Kalimantan coal miner PD Baramarta targets to increase coal production to 3.5 million tonnes this year from 2.2 million tonnes last year, according to a company official.

Operation Director Akhmad Yahni told Petromindo.Com on Monday that production target achievement would be subject to weather condition. “In 2006 Baramarta missed production target of 2.5 MT due to weather condition,” he said.

Up until the first semester of this year, the company, which is owned by South Kalimantan provincial administration, has produced only 1.2 million tonnes.

The company is currently producing coal from 2 pits with CV value ranging from 6,300-7,000 kcal/kg. Mineable reserves from the two pits, which total area of 1,600 hectares, are 12 million tonnes, he said.

Yahni said that the entire production from Baramarta are sold to trader called PT Prima Multi Mineral, to be exported to Asia Pacific countries such as Japan and The Phillipines.

Yahni further added that Baramarta would develop third pit in a area of 980 hectares within its concession. According to him, the third pit has mineable reserves of 6-7 million tonnes with CV similar to the first two pits. Exploitation is now pending issuance of permit from the Ministry of Forestry, he said, adding that the permit is expected to be issued next month.

Baramarta operates in a concession of 7,500 hectares of land with measured reserves of 50 million tonnes, he said.

Yahni also said that the company is studying possibility to develop underground mining in the concession, as some 4,000 hectares of the concession are located within protected forest. The company is currently in cooperation with Chinese firm called Mergi International Ltd to conduct study, he said. (denny)