Delma Mining to start commercial production next year

PT Delma Mining Corporation, which operates a coal mine in Bulungan, East Kalimanta, plans to begin commercial production next year, Kontan reported on Tuesday.

Bob Kamandanu, the owner of the mining company, said in Jakarta on Monday that his company would limit the production at only 500,000 tons as uncertainty in coal prices would likely continue during the year.

?We will limit the production next year because the coal prices are still difficult to predict,? said Bob, who is also the chairman of the association of Indonesian coal producers (APBI). He hoped that the coal prices in the world?s market would start recovery in the middle of 2013.

Delma obtained a mining permit in 1997 to develop a coal mine with reserves of about 180 million tons of low grade coal with calories of between 2,900 and 3,000 of kilo calories in Bulungan regency.

In order to upgrade the calories, Delma plans to build a coal upgrading plant with investment of about US$100 million, Bob said, adding that the company was also considering building a coal-fired power plant to take the advantage of the low calorie-coal. (*)