Golden Borneo boosts S. Sumatra coal output

South Sumatra coal miner PT Golden Great Borneo (BGB) is expecting to reach more than 2 million tonnes of coal output for this year, double compared to last year?s coal output of 1.2 million tonnes, the company?s official told Petromindo.Com.

The official said that BGB, which mine is located in Lahat regency has started coal production since 2009 and started early this year the company has produced 200,000 per month.

BGB can produce 2.4 million tonnes of coal this year but due to South East Asia Games XXVI in Palembang, South Sumatra provincial government told BGB to stop the hauling activity for 1 month, the official said.

Next year, the company plans to produce at least 2 million tonnes of coal.

BGB is using 320-kilomtere public road as a hauling road to bring coal from its mine in Lahat to Tanjung Api-Api port.

The mine still has a mineable reserve of 80 million tonnes with calorific value of 4,000 kcal/kg (GAR) and average total moisture of 37%.

At the present, 70 percent of its total production is sold to state electricity firm PT PLN?s power plants and the remaining 30 percent is open to any potential buyers, the official said.

BGB supplies to PLN under PT Kasih Industri. PT Kasih Industri, together with South Kalimantan based coal miner PT Senamas Energindo, has bagged coal supply deal with PLN to provide a combined 4.59 million tonnes of coal to PLN?s existing power plants and some of the PLN?s 10,000 MW first stage power plant projects. (denny)