Damanka, Tuhup seek investors to develop coal mines

Shareholders of Indonesia-exchange listed mining firm PT ATPK Resources Tbk have given approval for its unit PT Modal Investasi Mineral (MIM) to seek new investors to develop MIM?s coal mine units in Kalimantan.

MIM has 70 percent stake in PT Damanka Prima, which concession is located in Bengalon, East Kutai regency, East Kalimantan and 70 percent stake in PT Tuhup Coal Mining in Muara Tuhup, Murung Raya regency, Central Kalimantan.

The company said that both mines are still at exploration stage.

In September 2010, ATPK said that MIM would sell 19 percent stake of its 70 percent interest in PT Damanka Prima and will also sell its entire 70 percent stake in Central Tuhup Coal Mining mine. ?Damanka Prima needs fresh funds to develop the mine, meanwhile Tuhup has been facing financing difficulties to develop the mine.?

Meanwhile, ATPK also reported that its other East Kalimantan coal mining unit PT Sarana Mandiri Utama (SMU) could not commence production as planned in August 2010 as its mining contractors encountered problems in its mining area.

?Mining contractors encountered problems in its mining region, i.e. 65% of its mining area is a swamp and tidal marsh. In the end, making mining plans became very difficult and could lead to very high costs and longer preparation time to conduct its mining activities,? ATPK Resources said, adding that it is now looking for technologies and methods that can reduce mining costs.

SMU, which is located in Sesayap, Bulungan Regency initially planned production target of 60,000 tonnes of coal per month. (denny)