Baramutiara to commence coal production 2009

South Sumatra miner PT.Baramutiara Prima will commence coal production from its mine in the third quarter of 2009, when power plants owned by state electricity firm PLN, with which the company has long-term contracts commence operations.

A company official contacted by Petromindo.Com on Tuesday said that 2009 production would be plotted at 1.2 million tonnes, and then double to 2.4 MT the following year.

All coal production from the mine would be supplied to PLN’s proposed power plants; Suralaya Baru (1x 625MW, 900,000 tonnes per annum contract), Labuan (3x315 MW, 570,000 TPA) and Pelabuhan Ratu (3x315, 850,000 TPA) all of which are located in the western part of Java. “Total contract with the three power plants amounted to 2.4MTPA,” the official said.

Currently, the official said, the mine is already in the construction stage. The company is currently constructing loading port in Tungkal with capacity to load 1,500 tonnes of coal per hour and 30-km haul road from mine to port. Coal would be directly shipped to customers using 5,000 tonnes-capacity barges, the official said.

Baramutiara would also build stockpile with capacity of 40,000 tonnes, the official said.

In the first phase, the company would develop a 1,000 Ha mine called Cinta with mineable reserves of 76 million tonnes with stripping ratio of 2.2.

Coal produced from the mine would have CV of 4,200Kcal/kg, the official said.

The company has three other prospects with reserves of more than 500 million tonnes to be developed later, the official said.

Baramutiara is a third generation coal contract of work holder. (denny)