CNKO targets C. Kalimantan coal concession to start production next year

By Hiski Darmayana

IDX-listed PT Exploitasi Energi Indonesia Tbk (CNKO), which is engaged in coal mining and electricity, has set a target for its Sekti Rahayu Indah (SRI) in Sampit, Central Kalimantan, to start production in early 2014.

The company is currently seeking to complete the permitting process including obtaining the necessary approval for the environmental impact assessment or Amdal.

?We need to do this so that we can lift our permit from Exploration IUP to Production Operation IUP, which we predict to be completed in November,? CNKO Director Zulfian Mirza, referring to Mining Business Permit.

The company is also expanding its equipment fleet and building infrastructure facilities at the mining site. ?We expect to start production in early 2014, with initial production capacity of 300,000 tons,? he said.

Zulfian said that the coal, with calorific value of 3,800-4,200 kcal/Kg (GAR) will be supplied to power plants to be built by the company, and some for export.

CNKO acquire the SRI concession in 2012. Prior to this, the company already owned a producing coal concession in Martapura and Tanah Laut, South Kalimantan.

Editing by Reiner Simanjuntak