Geo Energy, Borneo Mitra enters coal contracting services deal
Tuesday, October 16 2012 - 06:40 AM WIB
Singapore-based coal mining firm Geo Energy Resources has entered into mine services contract with a coal mine owner, PT Borneo Mitra Sejahtera (BMS) at Loa Kulu, Kutai Kartanegara Regency, East kalimantan.
The company said that the services deal would be limited to overburden removal and coal hauling activities, in compliance with the 2009 Mining Law.
It said that BMS will undertake the coal excavation and coal sale activities.
Operations in relation to the contract commenced in September 2012 and shall continue throughout the economic life of the Borneo Mine, it said.
According to Petromindo.Com source, the mine has reserve of around 5 million tons with CV of 6,000-7000 kcal/kg (ADB) and total sulphur of 1-2%. The company is still seeking more buyers as it produces around 100,000 tons of coal per month.
Editing by Adianto P. Simamora