Berau Coal to start production from new block

East Kalimantan coal miner PT Berau Coal is expecting to start coal production from its block 1 in Binungan next year with initial production of 500,000 tonnes to support the company?s target production of 23 million tonnes next year.

PR manager Berau Coal, Bintoro Prabowo said that Berau has started construction in block 1 since September within an area of 900 hectares. The block 1 has a reserve of 10 million tonnes of coal, he said.

Berau Coal plans to produce 20 million tonnes and 23 million tonnes in 2011 and 2012, respectively, up from 17.4 million last year. Berau Coal expects additional coal production from Binungan block to be barged from Suaran port directly to customers or to the transhipment area beginning in 2011.

Binungan has several blocks, called Parapatan, Blocks 1 and 2, Blocks 3 and 4, Blocks 5 and 6, Block 7 West, Block 7 East and Block 8 (Kelay).

In 2010, coal production from the blocks reached 4.2 million tonnes. Total measured reserves being 111 million tonnes with calorific value between 4,800-5,920 kcal/kg (GAR). (*)