Delma in talks on coal supply deal with two Asian buyers

East Kalimantan coal mining firm PT Delma Mining Corporation is in talks to secure 10 million tonnes per annum (MTPA) coal supply deal with two buyers from Asia countries, the company?s executive official told Petromindo.Com without giving the name of buyers and country of origin.

Delma expects to start first coal supply in 2013-2014 with calorific value of 5,100 kcal/kg, the official said, adding that the coal supply volume of 10 MTPA will not be achieved in the first year, but gradually increased.

Delma will use a ?simple? drying process to increase calorific value of its coal, the official said. The original calorific value of Delma?s coal is about 4,800 kcal/kg (ADB) with total moisture 50% and 0.2 % sulphur content.

The official also said that Delma is on track to start commercial production in mid 2012 at 500,000 tonnes per year of low-rank coal and to increase it to 1 million tonnes per year in 2013.

Delma is a third generation of CCoW holder and the mine is located in Bulungan regency with a huge resource of at least 2.5 billion tonnes of low-rank coal. (denny)