FKP finalizing feasibility study on W. Kutai coal mining concession

East Kalimantan-based coal mining firm PT Firman Ketaun Perkasa (FKP) is finalizing the final feasibility study (FS) for a 2,490-hectare coal mining concession in Damai, Muaralawa, and Melak districts of West Kutai regency.

According to the FS draft report, which is assisted by the Bandung Institute of Technology, the concession is estimated to contain around 162.4 million tons of coal measured resources, 305.3 million tons of coal indicated resources, and 654.4 million tons of coal inferred resources.

Meanwhile, the concession?s mineable coal reserves are estimated at 30.6 million tons spread over a total of 32 coal seams. The laboratory analysis has confirmed that coal calorific values in the area ranges between 5,296 and 7,236 kcal/kg.

FKP plans to exploit the coals through an open pit mining method.

The company also plans to transport its products through road and river. First, the coal will be transported by an 18-20 ton trucks for about 16 kilometers (km) to a jetty port in Muara Bunyut by the Makaham river.

At the port the coals will be loaded into barges, which will take the coals to the Balikpapan Coal Terminal. Total distance for this river transportation is 509 km.

The concession is part of a third generation coal contract of work (CCoW) granted by the government to the company in 1999.

Another concession owned by the company, measuring 20,350 ha, is currently in exploration stage. This concession will enter the FS stage in the near future. (Robert)