Delma Mining plans coal blending facility construction
Friday, May 6 2011 - 12:10 PM WIB
President & CEO PT Delma Mining Corporation, Bob Kamandanu, said his company was conducting a feasibility study (FS) prior to construction of Coal Blending Facilities (CBF) in cooperation with a Chinese partner.
The FS is expected to finish in two months. The CBF will cost US$25 million.
?CBF is not expensive as it only costs US$25 million. It?s its operation that will be costly. We will determine its capacity, depending on the demand,? said Bob,
The CBF will be built in Delma?s Bulungan coal mine in East Kalimantan.
When the study is completed and the project declared feasible, Delma and its undisclosed Chinese partner will immediately negotiate division of investment, risks and obligations.
Bob added the coal mine in Bulungan was in the phase of construction, with production expected to start in mid-2012 at 500,000 tons per year and to increase to 1.5 million tons per year in 2013. (giok)