Bayan reaches agreement with neighboring concession holder
Monday, May 8 2017 - 08:04 AM WIB
Petromindo|Khalsa
IDX-listed coal mining firm PT Bayan Resources Tbk said it has now reached agreement with the neighboring concession holder in regards to mining in the boundary area.
?Coal mining has begun in this area in the first quarter of 2017,? Bayan said in a statement late last week.
Coal mining at subsidiary Wahana Baratama Mining (WBM) was limited to the Western area. Coal reserves in this area were depleted in the fourth quarter of 2016, Bayan said.
WBM produced 1.1 million tons of coal in 2016 which was 38.8 percent lower than the 1.8 million tons of coal produced in 2015. ?This was due to the depletion of coal reserves in western area in the fourth quarter 2016 and the inability to mine in the boundary area without further agreement being reached,? the company said.
WBM is a third generation coal mining contract of work (CCOW) holder located in Satui, South Kalimantan. WBM produces bituminous quality coal with calorific content of 6,300 ? 6,500 Kcal/Kg GAR. In order to support coal deliveries, WBM utilizes a jetty located at Sungai Cuka ? Satui. The coal is then transported by barges to KFT-1 in South Kalimantan waters, which served Handy/Panamax and /or capesize vessels.
Editing by Reiner Simanjuntak