Garda Tujuh plans to produce 2mt coal in 2017

By Romel S. Gurky

Courtesy of Garda Tujuh Buana

IDX-listed coal mining firm PT Garda Tujuh Buana Tbk said it plans to produce around 2 million tons of coal in 2017 as it resumes production at its East Kalimantan mine.

Garda Tujuh said it had not made any production until December of this year since suspending production activity in February of 2015 at its Bunyu Island coal mine in Bulungan Regency due to the weak price environment.

The company said in a statement on Thursday it had actually signed a contract with the mining contractor in November of this year to resume production activity, but the latter failed to provide the required mining equipment.

Garda Tujuh added that it has obtained a one-year contract, with option for extension, to supply coal to Singapore-based Alata Overseas. The US$9 million worth of contract, signed in October of this year, will be reviewed every three months, the company said.

The Bunyu Island coal mine has coal reserves of 72.8 million tons with calorific value of 5,100 kcal/kg.

Editing by Reiner Simanjuntak