Golden Great Borneo's coal production reaches 400,000 tons

By Cepi Setiadi

Indonesia coal miner, PT Golden Great Borneo said it has produced 400,000 tons of coal with 5600-5700 cv from its coal mine in Lahat, South Sumatra within 2012.

Director of Operation of Golden Grade Borneo, Harjanto, said that the company is expecting to produce about 2 millions tons of coal from the mine which started production since 2010. This target is the same with the company's production last year which was also 2 million tons.

"For the first three years of production we will stabilize at the amount of 2 Million tons just as an introduction to the market. Maybe after three years we will raise up the production as our brand has been recognized by the market," said Harjanto to Petromindo.com, on Tuesday.

Harjanto added that the coal's production from Lahat is mostly absorbed by domestic consumer.

"62 percent for domestic especially for Suralaya powerplant, Sibolga power plant and several industries in Bandung and Lampung while the rest of the coal was exported to Malaysia, China and India," said Harjanto. The company sells the coal at the price of US$ 43 per ton FOB.

Currently the company has coal resources of more than 54 millions tons in Lahat with the measured reserves being about 34 million tons.

Editing by David Mustakim