Borneo strikes deal to supply 1MT coking coal to Chinese firm
Tuesday, October 26 2010 - 02:01 AM WIB
The coal will be sourced from its Central Kalimantan hard coking coal mine unit PT Asmin Koalindo Tuhup (AKT).
The company said that it would sign in November another contract with different Chinese trader involving the supply of one million tons of hard coking coal, but the firm did not name the buyer.
It also said that it has deal to supply coal to Indonesian-based coke and carbon raiser firm PT Shenrong Carbon to supply 10,000 tonnes per month of coal for 1 year starting May 2010.
Borneo acquired 99 percent of AKT from Transasia Mineral Ltd in 2007. AKT, a coal contract of work (CCoW) holder, controls a concession area of 21,630 hectares in Murung Raya regency. AKT got the 30-year contract from the government of Indonesia in 1999.
AKT is located in South Kalimantan's hinterland, south of BHP Billiton?s Maruwai coal concession and east of Itochu?s semi soft coking coal mine PT Marunda Graha Mineral.
According to the prospectus, AKT has proved and probable reserves of 69.2 million tons and resources of 378.8 million tons at two blocks, namely Kohong and Telakon. AKT?s current coal production comes from the Kohong block.
AKT has commenced commercial production since September 2009 and has produced 752,000 tons of hard coking coal branded ?Tuhup Coal? from January to June 2010. Borneo expects AKT to produce 1.8 million tons and sell 1.6 million tons of coal in 2010.
Currently, the mine?s capacity is being ramped to 3.6 MTPA from 2.4 MTPA with completion seen at the end of 2010. Further production capacity ramp-up to 5MTPA is seen to be completed at the end of 2011. (giok)