Benakat Mining to start West Kutai coal production in Q2 of 2011

PT Benakat Mining, a mining unit of Indonesia-listed oil, gas and mining firm PT Benakat Petroleum Energy (BPE), will start its low CV coal production at West Kutai mine in the second quarter of next year, the company?s official said.

BPE?s investor relations & corporate secretary Ferdinand Dion told Petromindo.Com on Thursday that first year's production is estimated at around 300,000 tons and the output will be increased to 600,000 and 1.5 million tons in 2012 and 2013, respectively. Peak production is projected at around 4-6 million tons, Dion said.

?Currently, we are preparing to exploit the mine and assessing which pit to be develop first,? he said, adding that the company also plans to choose a suitable mine contractor to develop the mine.

The company is also seeking offtakers for the coal, he said.

The mine is located in Nyuatan village, East Kalimantan within a concession measuring 9,000 hectares. The company has secured IUP license with PT Delta Samudra as the holder, he added.

The company said the mine, which has been granted exploitation license by West Kutai regency administration, has reserves of 45 million tonnes. admnistration has issued exploitation license for the mine.

Benakat Mining also has a manganese concession in Manggarai, East Nusa Tenggara with reserves amounting to 900,000 tons. The company said in January 2010 that it has the potential to produce 120,000 tons of manganese per year. (denny)