Berau Coal to boost output at Binungan mine

By Cepi Setiadi

PT Berau Coal, a subsidiary of IDX-listed giant coal miner PT Berau Coal Energy Tbk, will increase production at its Binungan mine in Berau Regency, North Kalimantan Province, this year as part of strategy to help cope with the bearish global coal market that is expected to linger until 2016.

"In 2014, Binungan mine only produced 9 million tons. In 2015, we expect to produce at least 15 million tons," said Independent Director of PT Berau Coal Energy Arief Wiedhartono recently. Arief added that the Binungan mine actually has an AMDAL environmental license for 17 million tons production per year.

Arief said that to this plan, the company will develop several facilities at Binungan mine such as crusher and stockpiling facilities. "We expect to complete the development of these facilities in the first quarter of 2015," he said.

Arief added the company will also move equipment from Lati mine to Binungan mine. "We have a plan to reduce production at Lati mine, that is why most of the equipment from Lati will be moved to Binungan.?

He said that this strategy will be applied as the coal CV from Binungan is higher than coal from Lati. Binungan coal also has lower sulfhur than Lati coal.

Berau Coal has set a target to produce 27 million tons of coal in 2015 from its mines including Binungan, Lati and Sambarata. In 2014, the realized production was about 23.4 million tons.

Editing by Reiner Simanjuntak