Delma to finalize coal offtake deal soon

By Denny H. Tarigan

East Kalimantan coal mining firm PT Delma Mining Corporation is on track to start its commercial coal production in the middle of this year, the company?s executive told Petromindo.Com.

The production volume in the first year will be smaller than the initial target, the official said, without giving the figure. Earlier it was reported that Delma planned to produce 500,000 tonnes in the first year and to increase it to 1 million tonnes in 2013.

The company is also finalizing the offtake deal with a foreign buyer, the official said, without giving the name of the buyer. ?We expect to sign the deal soon,? is all the official said.

Delma is a third generation 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.

Editing by David Mustakim