Bhakti Coal to produce 5MTPA in 2012

Indonesian listed diversified company PT Bhakti Investama Tbk through its coal unit PT Bhakti Coal Resources (BCR) is targeting to triple production from Sumatra and Kalimantan mines to 5 MTPA in 2012.

The company disclosed on Monday that its South Sumatra unit PT Putra Muba Coal (PMC) mine in Musi Banyuasin regency will increase production to to 200,000 tonnes per month in the third quarter of this year from 60,000-70,000 tonnes per month currently.

The company said it would open new block called PMC-A to boost coal output from the mine. The new block is expected to start coal production in the end of this year

Currently, the coal from PMC mine is for export market to India and the company is also eyeing mine-mouth power plant project, it said.

According to the company, the mine has estimated coal resources around 100 million tonnes with estimated reserve of 50 million tonnes.

Its another South Sumatra coal unit PT Bumi Sriwijaya Perdana Coal (BSPC) will start initial coal production in this year with an output of 25,000 tonnes per month.

At the present, the mine is in exploration stage. The company will build infrastructure in the mine before entering normal production. BSPC is expected to ramp up coal output to 200,000 per month by the end of 2012

The mine has a concession area of 2,000 hectares located in Musi Banyuasin regency. The mine has a calorific value of 4800 ? 5000 kcal/kg ADB); total moisture 24% - 47%; Ash content 10% max; total sulphur 0,4% ? 1,5%.

Meanwhile, BCR is also planning to increase production to 100,000 per month in May this year from 40,000-50,000 per month currently from its East Kalimantan-based coal miner PT. Nuansacipta Coal Investment (NCI).

The company has a long-term plan that NCI will produce 150,000 per month of coal starting third quarter of this year and further increase to 200,000-350,000 tonnes of coal per month.

NCI will build coal infrastructure including haul-road and jetty port to anticipate increasing future coal output. NCI will build its new own jetty port in Mahakam river, which currently NCI rent from third party in Sanga-Sanga port.

NCI has a calorific value of 5,486 ? 5,547 kcal/kg (ADB) with Moisture 26.6 ? 27.3% (AR); Ash content 2.3% ? 4.7% (ADB); Total Sulphur 0.26 ? 0.50% (ADB)

Apart from the three mines, the company has other six concessions, all of which are located in South Sumatra, which are still at exploration stage.(denny)