Geo Energy unit suspends E. Kalimantan coal mine
Saturday, May 14 2016 - 04:28 AM WIB
SGX-listed Geo Energy Resources Ltd said that its East Kalimantan coal mining subsidiary PT Bumi Enggang Khatulistiwa (BEK) has temporarily suspended its operations, whilst it restructures its costs of production.
?The company is in the midst of enhancing BEK coal mine?s value chain and lowering its cost of production,? Geo Energy said in a statement obtained Saturday.
Coal production at BEK is expected to resume by the end of 2016, the statement added.
The BEK mining concession area is 4,570 hectares located in Kutai Barat Regency, East Kalimantan, with coal reserves of 11.1 million tons of thermal coal measuring an average calorific value in excess of 3,400 GAR.
Geo Energy has another coal subsidiary called PT Sungai Danau Jaya (SDJ), which operates two concessions in Tanah Bumbu Regency, South Kalimantan, which began commercial production in December of last year. Geo Energy said recently it expects to produce more than six million tons of coal this year.
Editing by Reiner Simanjuntak