Baturona begins trial mining at S. Sumatra coal concession

Local mining company PT Baturona Adimulya has begun trial mining activities at its coal mine concession in Sungai Lilin and Keluang districts, Musi Banyuasin (Muba) regency, South Sumatra, local daily Sumatra Express reported on Friday.

The trial mining activities were launched in a ceremony attended by local senior government officials including the regent of Muba, Alex Nurdin, and the company's top executives.

The regent said that the local government strongly supported Baturona's coal mining operations and hoped its mining activities would bring a positive impact on the local economy.

Baturona signed the contract with the government on November 20, 1997 to survey, explore and develop coal resources in a 99,840 ha area in the province.

The company’s preliminary exploration results indicate that the Keluang block has total coal reserves of 31.2 million tons, while the North Lais and Muara Teladan blocks are believed to contain a total of 68.4 millions tons coal reserves.

Based on sample analysis, deposits found in Baturona’s concession falls is categorized as low-grade coal with high moisture content of between 21-38.2 percent, and calorific value of between 5,530-6,180 kcal/kg.

Elsewhere, Alex said at least 22 licenses to open mining operations in Muba have been proposed to the Ministry of Energy of Mineral Resources since early 2000s, but only 14 of them have been issued.

Of the 14 licensed companies, only PT Baturona has begun its mining operation. (*)