Danau Mashitam lowers production target

Bengkulu coal miner PT Danau Mashitam lowers down its monthly production target to 18,000-20,000 tonnes from 25,000 tonnes per months last year as it was moving exploitation activities to a new pit next month , a company official said.

General Engineer Tulus Agustinus told Petromindo.Com last week that production from existing pit was down sharply due to higher stripping ratio and the fact that the mining area was covered by andesite layer that make exploitation difficult.

The new pit has mineable reserves of 2-2.5 million tonnes of coal with stripping ration of 1: 6-8, he said.

Agustinus said all coal production from the mine are sold on spot basis to cement plant in Sarawak and power plant in peninsular Malaysia. The company ships two barges with capacity of up to 9,000 tonnes through Baii port every month.

The company produces coal with CV range of 5,800-6,300 kcal/kg. (denny)