Bukit Asam begins coal production at Peranap mine

State coal mining company PT Bukit Asam Tbk has officially begun coal production at the company?s mining area in Peranap, Indragiri Hulu, Riau.

Speaking in his speech during the inauguration of the commencement of production activities at the Peranap mine, on Friday, Bukit Asam President Director Milawarma said as quoted by Bisnis Indonesia that the company would involve the local government in preparing further mining operation to ensure that the local people would also benefit from the development of the mining area.

Milawarma said the Peranap mine had potential coal reserves of 792 million tons with mineable reserve of about 367 million tons, which can be mined for about 40 years.

?We estimate top production capacity will reach 10 million tons a year. With this production level, the coal reserve can be mined for up to 40 years,? he said. In the initial stage, PTBA will produce 500,000 tons in the Peranap mine which will be exported to India. The production will be gradually increased to 2.5 million tons a year by 2016.

Bukit Asam said earlier that it planned to increase its coal production at its main coal mine in Tanjung Enim, South Sumatera by 26 percent to 17.42 million tons in 2012 in line with an increase in the railway capacity from the mining area to its main coal terminal in Tarahan, Lampung. (*)