Cahaya Energi to increase coal production

East Kalimantan coal miner PT Cahaya Energi Mandiri (CEM) is targeting to boost its monthly coal production to 150,000 tonnes this year, from 100,000 tonnes last year, the company?s official told Petromindo.Com.

CEM mine, which is located 40 kilometers away from Samarinda, the capital of East Kalimantan, has a calorific value of 5,700 kcal/kg (GAR) with low ash and sulphur contents. The mine covering 1,600 hectares of lands started production in 2006, the official said.

At present, the company has hired four local contractors to conduct mining activates. The main contractor is PT CMS Kaltim Utama, the official said.

The mine owns a jetty port by the Pangakalan river, which is accessible to 270-feet barges and only about 30 minutes away from the Mahakam river.

CEM is also planned to expand coal production by bringing its new West Kutai coal mine into production. The mine has low-rank coal deposit. ?At present, it is still in exploration stage,? the official said without specifying when the new mine will start production.

The official said that the company has a long contract supply commitment with a trading firm, but the official did not identify the trader.

In February 2011, US coal mining giant Peabody has entered into an agreement with CEM to source 2 million tonnes of coal for Asian export through Peabody COALTRADE's international trading hub in Singapore.

Coal from PT CEM will be secured over two years and the relationship could be expanded over time, Peabody said in Feb 26. (denny)