Batubara Bukit Kendi ready to start coal production

PT Bukit Asam Tbk (PTBA) is hoping its subsidiary PT Batubara Bukit Kendi will soon receive forest-lease permits from the forestry ministry so that it will be able to resume its coal mining operation in Tanjung Enim, South Sumatra, Bisnis Indonesia reported on Thursday.

PTBA?s president director Milawarma said in Jakarta on Wednesday that the forest-lease permits were currently under a final process at the forestry ministry. ?All the administrative requirements including a working map were submitted to the forestry ministry early this year,? he added.

According Milawarma, coal concession areas owned by Batubara Bukit Kendi (BBK) has the capacity to produce 1 million tons a year and employ between 700 and 800 workers. PTBA has a 75 percent stake in PT BBK which was established in 1996. BBK stopped its mining activities in 2010 because the company had not received forest-lease permits to carry out its mining activities in forest areas.

Milawarma said that coal concessions owned by PTBA and subsidiaries in Tanjung Enim hold coal reserves of about 1.6 billion tons. The company which at present produces about 13 million tons of coal a year expects to increase its production to 25 million tons in 2014. In 2013, the company expects to produce 18 million tons. (*)