Coal Fe Resources ramping up coal output

By Cepi Setiadi

Australian coal miner Coal Fe Resources Limited is ramping up the production of its coal mine in Kutai Kartanegara regency, East Kalimantan up to 1 million tons this year, an industrial source told Petromindo.Com.

The company started producing low-ranked coal with calorific value of 4,800-5,500 in 2010. Last year, the company produced about 600,000 tons. "We expect to produce about 800,000 to 1 Million ton this year and further ramp up the output to 1.5 million next year," the source said.

The company sells its coal mostly to domestic buyers. "Domestic market is much better than export market. We get a good price here," he said. Still, he added, the company is putting into consideration the option of exporting more coal in the future.

The company has a total concession area of 961 hectares, on 300 hectares of which the company has identified 34 millions tons of coal resources. "Hopefully we will know the reserve figures within two months," he said, adding that the remaining 600 hectares of the concession are still in the exploration stage.

Editing by Johannes Simbolon