Garda Tujuh Buana plans to ramp up production

IDX-listed coal mining firm PT Garda Tujuh Buana Tbk said it was stopping coal production from its mine in Bunyu island, East Kalimantan as it has yet been able to find buyer for its high-moisture coal production.

VP Finance Pardeep Dhir said in a recent public expose that the Company has started mining in December 2009 with production of 150,000 tonnes.

Pardeep said the Company is installing a dryer at the mine to reduce moisture content which could reach 55 percent.

Pardeep said the Bunyu mine will resume production once the drier has been in operations.

He said the mine will produce coal with capacity of 250,000 tonnes per month this year and will ramp up to 400,000 tonnes per month in 2011 by improving haul road, doubling crushing plant capacity to 1,000 tonnes per hour and tripling conveyor belt capacity to 3,000 tonnes per hour.

He said the Company is currently dealing with potential offtakers from India, China, Thailand and Indonesia. (bernard)