Golden Eagle to develop South Sumatra mine

Through its subsidiary Triaryani, PT Golden Eagle Energy Tbk, a publicly listed coal mining firm, plans to develop a coal mine in South Sumatra, which is estimated to have coal resource of about 384 million tons and coal reserve of about 242 million tons.

Hendra Surya, President Director of Golden Eagle, said that Golden Eagle planned to seek bank loans worth up to US$25 million to finance mining expansion, which is expected to begin next year.

He said that the South Sumatra mine would be developed and operated by its subsidiary Triaryani, which is expected to produce about 1 million tons of coal a year beginning next year.

The production at the South Sumatra mine will be increased to five million tons within four years. In order to meet the production, Golden will need about $45 million in total investment for mine and infrastructure development.

In addition to Triayani, Golden also has coal mining subsidiary PT International Prima Coal, which develops a coal mine in East Kalimantan in cooperation with PT Bukit Asam. According to a study, the East Kalimantan mine has a coal resource of 27 million tons and reserve of 11 million tons. In 2011, IPC produces about 560,000 tons.(*)