BEP gets $500m commitment from sharholders to develop Wahau coal mines
Monday, June 6 2011 - 03:23 AM WIB
The company?s CEO Jeffrey Mulyono said last week that the firm needs around $500 million to develop the mine, which is expected to start commercial production in June 2013 with first year's production estimted at 2 million tonnes.
?We don?t need financings from banks or other institutions for the project. We?ve got guarantee from our shareholders to develop the mine,? he said.
At present, the company is calling for bids to build haul-road and port facility, he said, adding that of the $500 million funds, around $150 millin will be spent for the development of haul road and $200 million for the development of port facility.
The remaining $150 million will be expended to develop other infrastructure projects, he said, adding mine contracting service and heavy-equipment lease or purchase are excluded from the costs to be covered using the $500 million funds.
"We have yet to tender mining contactor service. We expect to tender it within the next six months. I think, only top-five mine contractors are capable of handling such big projects, like ours,? he said.
The company is planning to produce 6 million tonnes in 2014, 12 million tonnes in 2015 and 24 million tonnes in 2016.
BEP is the holding company of seven coal mining companies, which are all located in Muara Wahau district. The firm's coal has a calorific value of 5,200 kcal/kg (ADB) or 3,400 kcal/kg (AR), low sulphur content of below 0.2%, low ash content of around 5% and high moisture of around 46%, he said. (denny)
| Mining Companies | Permit | Area (ha) | Resources (tonnes) | Reserves (tonnes) |
| PT. Telen Eco Coal (TEC) - JORC | IUP | 6,844 | 9.528 billion | 5.606 billion |
| PT. Persada Multi Bara (PMB) - JORC | IUP | 4,950 | ||
| PT. Khazana Bumi Kaliman (KBK) - JORC | IUP | 5,066 | ||
| PT. Bumi Kaliman Sejahtera (BKS) - JORC | IUP | 4,921 | ||
| PT. Bumi Murau Coal (BMC) - JORC | IUP | 5,012 | ||
| PT. Tri Panuntun Persada (TPP) - JORC | IUP | 2,575 | ||
| PT. Birawa Pandu Selaras (BPS) - JORC | IUP | 4,603 |