CircleOne?s subsidiary to start coal production late this year

PT Karya Bumi Baratama, a subsidiary of South Korean Firm CircleOne, will start coal production at its concession in Sorolangun regency, Jambi province by the end of this year.

Circle One?s General Manager Young-Joo Lee told Petromindo.com on Wednesday that the coal mine is now in the construction phase. Karya Bumi will start with an annual productionof one million tons of coal per year and the output will be exported to South Korea where the coal will be used as blending coal given the fact that it contains low calorie.

The export will continue until after the firm finish the construction of a mine-mouth power plant in the province.

?We are negotiating with state owned electricity firm PT Perusahaan Listrik Negara (PLN) for the construction of a 2x100 MW power plant,? he said.

The then PLN President Fahmi Mochtar said last month that Circle One and Korea Western Power have promised to provide loans worth about US$250 million to help finance the development of the mine-mouth power plant.

He said that the feasibility study of the power plant would be carried out by PLN?s subsidiary PLN Enjiniring and would be financed by the South Korean government.

Fahmi hoped that the construction of the power plant could be started by the end of 2010 or early 2011 so that the new power plant could begin its commercial operation by the end of 2013. (Denny)