Bhumi Rantau to ramp up coal production

South Kalimantan coal miner PT Bhumi Rantau Energi is planning to ramp up coal production to 1.5-2 million tonnes per year within the next three years to tap expanding market, according to a company source.

The official, who preferred anonymity, told Petromindo.Com on Tuesday that the mine’s expansion would be through opening of new mines within its contract area. He, however, said that securing permit from the Ministry of Forestry could be a big problem. “Some of the coal deposit located in the area designated as protected forest,” the official said.

Up to the first half of this year, the company has produced only 174,000 tonnes of coal and most likely would not be able to meet production target of 600,000 tonnes this year, blaming bad weather condition that hit the mine during January-March period.

The company, which produce coal with CV range of 5,300-5,500 Kcal/kg employs PT.Pamapersada Nusantara as mining contractor. The company sells its entire coal production to trader PT.Padang Bara.

The company has concession area of 2,000 hectares. (denny)