GTB delays coal production to early 2009

East Kalimantan coal miner PT.Garda Tujuh Buana (GTB) will delay its first coal production to early 2009 from the third quarter of this year as initially scheduled.

GTB director Hari Purnomo told Petromindo.Com on Friday that the company was currently building mine infrastructure and looking for mining equipment to be able to begin production early 2009.

?Currently, we are building mine infrastructure including a 10-km hauling road from the mining site to loading port,? he said, adding that the company planned to produce 2 million tons of low-rank coal during the first year of production.

Earlier, Hari said GTB would conduct its own mining operations and ship the entire coal production to export market. Currently, GTB is in negotiation with several potential buyers.

Indian firm Oswal Group had bought the entire stake of GTB in December 2007 for US$15 million. GTB operated low-rank coal mine in Bunyu Island but was forced to cease operations early 2007 due to financial problems. (denny)