GEMS says new S. Sumatra coal unit to produce 500,000t this year

By Thomas Sembiring

Petromindo|Khalsa

IDX-listed coal firm PT Golden Energy Mines Tbk (GEMS) said that its newly-acquired subsidiary PT Bara Sentosa Lestari (BSL) is targeted to produce 500,000 tons of coal this year.

GEMS CEO Bonifasius told Petromindo.com on Tuesday that the production target is in line with the target set under the company?s 2017 work budget and spending plan.

Bonifasius said that there will not much investment allocation required by BSL as the required infrastructure facilities are already available. With calorific value of 4,700 GAR, the BSL coal production will be sold to state-owned electricity firm PT PLN.

Bonifasius said last week that GEMS had entered into a conditional sale and purchase agreement with Indian firm GMR Infrastructure to acquire effectively 100 percent of BSL, in a transaction worth US$65.6 million.

BSL is a second generation CCOW mining license with 30 years of mining rights starting March 2011. It is located over an area of 24,385 hectares in Musi Rawas and Musi Banyuasin provinces in South Sumatra.

Editing by Reiner Simanjuntak