BHP?s Haju coal mine to produce 1m tons this year

By Tri Subhki R

ASX-listed BHP Billiton has in recent months started production at its Haju coal mine in Central Kalimantan, which is targeted to produce 1 million tons this year.

?We recently commenced production at Haju Mine and set production target at 1 million tons of coal for this year,? BHP?s Director of Corporate Affairs Imelda Adhisaputra said to Petromindo.com

The Haju mine is operated by PT Lahai Coal, which holds one of the seven Coal Contracts of Work (CCoW) within the IndoMet Coal Project, which is 75 percent owned by BHP and 25 percent owned by PT Adaro Energy Tbk. Haju mine commenced the commercial production since September 2015.

The company said in a filing with the ASX that coking coal output increased from 15,000 tons at the start of the production phase in September to 87,000 tons in October-December period of last year, to make a total of 102,000 tons.

Imelda added that the global coal sector is facing significant challenges, including price declines of up to 30 percent over the past year. ?We continue to look for ways to improve productivity and reduce costs at each of our mines,? she said.

Editing by Reiner Simanjuntak