Hanson expects S. Sumatra coal mine to start production in 2009

Coal mining firm Hanson Energy, an affiliate of JSX-listed firm PT Hanson International Tbk expects coal production from its mine in Ogan Komering Ulu (OKU) regency in South Sumatra to start in early 2009, if it win coal supply contract to state electricity firm PLN.

“Production from OKU mine will be subject to winning long-term coal supply contract to PLN, “ Director Harun Setiawan Boedi told Petromindo.Com on Wednesday. PLN has opened tender to seek low calorific value (CV) coal supply for its proposed 10,000-MW power plant project, with winners are expected to be announced by the end of this year.

The mine will produce 2.5 million tonnes in the first year of production, ramping up to 3 MTPA in the following years, he said.

He also said that the company is planning to export some of its future production.

The mine is located about 200 kilometers from Tarahan coal port in Lampung province. Hanson is currently considering building overland conveyor to transport the coal to Tarahan. Hanson, together with German firm Thyssen Krupp AG are currently mulling to build an overland conveyor to transport the coal to Tarahan, he said.

Harun said the OKU mine covered an area of 10,000 hectares of land, with mineable reserves of 46 million tonnes, with CV ranging from 4,700-5,600 Kcal/kg. (denny)