Duta Pertiwi sees Jambi coal mine to start production late 2009

IDX-listed firm PT Duta Pertiwi Nusantara will invest up to US$100 million to bring its Jambi coal mining subsidiary PT.Intitirta Primasakti to come onstream late 2009.

CEO Siang Hadi said the company has appointed Merrill Lynch as financial consultant to raise fund from overseas lenders, adding that the fund would be used to build infrastructures such as hauling road, stockpile and jetty.

Hadi said the mine is expected to produce 600,000 tonnes in the first year, ramping up to 2 MTPA in the next five years.

Currently, Intitirta is conducting drilling to obtain JORC-compliant resources. He estimated the mine?s concession has 100-200 million of coal with CV range of 5,000-5,700 Kcal/kg.

Hadi said that the Intitirta would focus to sell its cola production to domestic users such as state electricity firm PLN.

Intitirta operates a 46,000 hectares coal-mine in Jambi, which would be reduced to 25,000 hectares once production started.

Duta Pertiwi has 60 percent stake in Intitirta, with Peta Airus, a local company controlled by shipping magnate Oentoro Surya, controlling the balance. (bernard)