BHP's unit to invest $66 million in coking coal project
Thursday, September 6 2007 - 10:24 AM WIB
Coal miner PT Lahai Coal, a wholly-owned subsidiary of Australian mining giant BHP, plans to invest US$66 million to develop the high quality coal resources at Haju block in Central Kalimantan.
Company president director Indra Diananjaya said on Thursday the mine was expected to produce between 1 and 2 million tons of coal per annum starting in late 2008. Seventy percent of the output will be coking coal with the remainder being high quality thermal coal with a calorie content of 7,000 kCal/kg or higher.
According to Indra, the company has secured a construction permit from the Ministry of Energy and Mineral Resources but the company had yet to start construction works because it had yet to obtain the forestry permit from the Ministry of Forestry.
Haju block holds 4 million tons of coal deposit. It is part of the Lahai concession, which is mostly still in exploration stage. The Lahai concession is one of the seven concessions owned BHP located close to each other in Cental Kalimantan to East Kalimantan provinces. Five of the concessions are still in exploration stage. Another concession called Maruway is now doing a feasibility study and is expected to start production in 2010.
BHP earlier said in its presentation that the area encompassing all the seven concessions, also known as "Maruway Complex", is designed to become a giant coking coal production center that is able to supply 10 percent of the world's coking coal needs over several decades.
The Haju project will become the backbone of the giant project.
Explaining some details of the project, Indra said coal from Haju would be transported with trucks to the barge port at Muara Tuhup along a 41-km hauling road. Coal will then be loaded with conveyors into 4000 ton barges which will carry the coal to an immediate port at Teluk Timbau, South Barito, where the coal will be loaded and stockpiled. The coal will then be loaded into larger 8000 tons barges which will transport it to an offshore transshipment facility at Taboneo, South Kalimantan.
The distance from mine to transshipment point is 600 km, explained Indra. (Alex)