Coal FE plans to produce 1 MTPA next year

Australian-listed firm Coal FE Resources Limited said Thursday that it and its joint venture partner PT Toba Jaya were now aiming to maintain a stable monthly production of 50,000 tonnes of coal before moving to the next planned target of 1 million tonnes per annum (MTPA) by the end of this year from PT Pancaran Surya Abadi coal mine in Kutai Kartanegara regency, East Kalimantan.

?The high incidents of rainfall in the month of December had hindered the production and hauling of coal in the Abadi mine site. Nevertheless, the target of completing the construction of the Abadi private stockyard and jetty was achieved by the end of the quarter under review,? the company said in statement.

The company, which under the joint venture deal with PT Toba Jaya has started coal production in September 2010 and first trial shipment from Abadi mine in mid November 2010, but the company did not give detail on the market for its coal and who the buyers were.

The area of the concession was adjusted marginally from 1,017 Ha to 996 Ha in the final mining, operation and production license (IUP Operasi Produksi). Of this total concession area, the company has completed drilling program covered 300 hectares. The remaining 696 hectares is presently unexplored. (denny)