Indexim in coal mining JV talks with Glencore

East Kalimantan miner PT Indexim Coalindo said it was in talks with Australian unit of global commodity trader Glencore AG to jointly operate its mine, which is scheduled to start operations in early 2009.

?We?re still in talks. We don?t know yet the portion Glencore will take in the planned JV,? Technical Affair GM Kristianto told Petromindo.Com on Friday.

He said Indexim?s mine, which is located in East Kutai regency, will start operations in the first quarter of 2009 with initial output of 1 million tonnes, ramping up to 3MTPA one year after.

The mine will produce coal with CV value of 5,500Kcal/kg, he said, adding that the mine?s mineable reserves of 50 million tonnes. Indexim is the second-generation Coal Contract of Work holder. He expected reserves to keep increasing in line with continued exploration the company conducted in the 24,000-hectare concession area.

Kristianto said Indexim would build 30-km haul road from mine to seaport and the coal may be loaded to the vessel through belt conveyor.

He did not disclose the capacity of the port. (denny)