Ilthabi to start production in 2008 at 5MTPA

East Kalimantan coal miner PT. Ilthabi Bara Utama has secured financing of US$135 million form a number of private investment funds and investment bank Merrill Lynch, Investor Daily reported on Monday.

CEO Ilham Habibie, the son of former President BJ Habibie, said the mine, which is located in Kutai Kartanegara regency, would start production in July next year with first year production of 5 MTPA, ramping up to 20 MTPA within the next 5 years. In May 2007 interview, however, Habibie said the mine would start producing with 1-2 MTPA next year, ramping up 6MTPA in five years? time.

Habibie said the mine has JORC compliant mineable reserves of 270 million tones and resources of 3.3 billion tonnes, with CV value of between 4,800-5,000 Kcal/kg.

Ilthabi has appointed Clough Limited through its Indonesian subsidiary PT.Petrosea to carry out construction works for the mine.(*)