Energi Batubara to dismiss its current coal contractor

South Kalimantan coal miner PT Energi Batubara Lestari (EBL), a coal unit of Hasnur Group, will dismiss its current mining contractor SERVO as it plans to develop its mine by itself, the company?s senior officer has said.

?We (EBL) has informed SERVO and we expect our subsidiary to take over the works in October this year,? the official said last week

EBL will invest around US$30 million for the subsidiry to do the mining business.

This year, EBL, which has been producing, expects to produce 1.5 million tons of coal and ramp up the output to 3 million tons next year, the officer said.

EBL will start delivering coal in October this year for state-owned electricity firm PT Perusahaan Listrik Negara's (PLN) power plant in Bangka Belitung. ?EBL will ship 70,000 per month of coal to PLN?s power plants outside Java,? the officer said.

In March, EBL has been named one of the winners to supply low CV coal under a 20-year contract to PLN?s power plants built under 10,000 MW crash program scheme.

The winners will supply coal to PLN?s power plants in Nagan (Aceh), Pangkalan Susu (North Sumatra), Teluk Sirih (West Sumatra), Bangka Baru (Bangka and Belitung), Bengkalis (Riau), Selat Panjang (Riau), Tanjung balai Karimun (Riau), Trahan Baru (Lampung) and Asam Asam (South Kalimantan).

EBL mine has a concession area of 2,000 hectares in Tapin regency. The mines produce coal with gross CV ranging from 5,300-5,500 kcal/kg (ADB). (denny)