Geo Energy seeks to boost coal output

By Romel S. Gurky

Petromindo

SGX-listed Geo Energy Resources has set a coal production target of 10 million tons in 2017, an increase of 82 percent from its sales of 5.5 million tons in 2016.

?We expect this target will put us among the top 10 Indonesian coal producers by volume,? the company said in a recent statement.

Since the beginning of production at subsidiary PT Sungai Danau Jaya (SDJ), Geo Energy has ramped up production from just 55,000 tons in December 2015 to a total coal delivery of 5.5 million tons in 2016. SDJ has engaged open-cut coal mining contractor BUMA, a subsidiary of IDX-listed mining services firm PT Delta Dunia Makmur Tbk., to conduct mining operations

The SDJ concession covers an area of 235 ha, and is administratively located in Angsana and Sungai Lohan districts, Tanah Bumbu Regency, South Kalimantan Province.

?We aim to achieve a similar ramp up at the new assets, with PT Tanah Bumbu Resources (TBR) expected to begin production in 2017,? Geo Energy said.

TBR is currently a greenfield concession and coal production has not commenced. The Group is in discussion to engage a mining contractor to conduct mining operations in the second half of 2017. Coal located within the TBR concession may be characterized as a high moisture, variable ash content, low sulphur and low energy coal

The TBR project area covers a total of 489 ha of land located in the Angsana and Sungai Lohan sub district, Tanah Bumbu Regency, South Kalimantan Province.

Editing by Reiner Simanjuntak