BHP to start Kalimantan metallurgical coal production 2008
Wednesday, August 22 2007 - 07:05 AM WIB
The company revealed in a presentation material released Wednesday that the project would have initial capacity to produce 1MTPA of clean coal.
The company said second phase development would ramp up production to 5MTPA starting the first half of 2011.
BHP has at least seven coal mining concession in the heart of Kalimantan.
The figure given by the company was far lower than the 17.5MTPA peak production the company earlier planned back in 2005, when it said its Kalimantan coal production would be able to supply 10 percent of world sea borne coking coal market.
The project has some significant technical challenges as the reserves are located in the heart of Kalimantan, it would require 560-700kms transportation before reaching the sea, the longest Indonesia, which will consist of up to 250 kms of hauling road and up to 500 kms of barging distance, making transportation cost skyrocketed to $25-35 per tonne, compared to $2-5 per tonne range for average Indonesian other coal miners which are located close to sea, Ken Crichton, president of BHP unit PT. Maruwai Coal said in Jakarta in 2005.(alex)