Bayan to focus in Tabang coal project

By Tri Subhki R

IDX-listed coal miner PT Bayan Resources Tbk will focus its coal production activities this year at the Tabang coal project in Tenggarong, Kutai Kertanegara regency, East Kalimantan, after suspending the Gunungbayan coal project.

Bayan owns 90 percent of PT Bara Tabang, which holds the IUP mining permit for the 3,015 hectares Tabang concession. ?We will spend most of (our) capital expenditure of this year for Tabang coal project,? Bayan Director Jenny Quantero said recently. The company sets US$50 million to $80 million of capital expenditure this year.

Jenny said that the company is developing the infrastructure facilities in Tabang, including the development of 69 kilometers hauling road, expansion of coal crushing facility and Senyiur jetty.

Tabang coal project, according to Jenny, is Bayan?s hope in the current weak coal market. The project has just started this year and already produced 400,000 tons of coal in the first quarter. This is part of the company?s strategy to retain its higher calorific value coal and exploit the lower CV coal.

Tabang has lower calorific value at 4,200 kcal/kg (GAR) than Gunungbayan coal. ?However, the stripping ratio in Tabang is quite low at 1.5x to 2x? she said, pointing out that the Tabang coal project has lower production cost than other Bayan?s coal projects.

Editing by Reiner Simanjuntak