Garda Tujuh resumes coal production

IDX-listed coal mining firm PT Garda Tujuh Buana Tbk has recently resumed coal production at its mine on Bunyu Island, Bulungan, East Kalimantan Province, amid rising trend in the price of the commodity, Kontan reported on Tuesday.

The paper quoted company Commissioner Pardheep Dhir as saying that production resumed this month, and the company aims to produce between 300,000 and 400,000 tons in the two-three months period. Production will be ramped up next year when price and demand remain solid.

He said that about 80 percent of the output will be exported to India, and the remainder to China.

Garda Tujuh suspended production at the Bunyu Island coal concession, which has coal reserves of 72.8 million tons with calorific value of 5,100 kcal/kg.

The Newcastle coal price index has risen to around US$79 per ton compared to around $53 per ton at the start of the year.

In the future, Dhir said, Garda Tujuh plans to acquire coal mine producing high CV coal as the company aims to export the commodity to Japan and South Korea. He added that other future expansion plan is into gold mine in Sudan. (*)