BPCI expected to commence coking coal production in August

By Romel S. Gurky

Coal miner PT Borneo Prima Coal Indonesia (BPCI) is expected to start production of coking coal in August of this year from its mine in Central Kalimantan.

This was said by ASX-listed Zamia Metals Ltd, which in October of last year, signed a share sale and purchase agreement (SSPA) with the shareholders of Kirkham International Pte Ltd where Zamia agreed to acquire 100 percent of Kirkham, which in turn owns 95 percent of BPCI.

Zamia said in a statement Monday that the company and the Kirkham shareholder shave entered into a binding deed of variation, varying the terms of the 2016 SPPA to reflect positive changes in commercial progress of the BPCI coking project as follows.
- BPCI has entered into a five-year alliance mining services agreement with PT Bruder Konstruksi Nusantara (Bruder). Bruder is a wholly-owned subsidiary of PT Bruder Bebas Indonesia that specializes in contract mining, quarrying, civil construction, mine infrastructure, earthworks and construction equipment rentals. Bruder and its key personnel have significant Indonesian country experience.
- Execution of sales contract with customer, Sun Sign International Limited, for a 5-year period to realize high margin operations. Sales contract confirms demand of 25,000 tons per month upon commencement of production.

?Kirkham anticipates that mining of coal will commence in August 2017 with first sales occurring in early September 2017,? Zamia said in the statement.

The BPCI coal mine is located in a significant coking coal producing region area known as the Burito Basin in Central Kalimantan. This region currently produces approximately 11 million tons of coking coal per annum which is exported to China, Korea, Japan and also some small domestic sales.

BPCI will produce a premium low ash, high fluidity and coke strength coking coal product for the Chinese and Japanese export markets.

Editing by Reiner Simanjuntak