India?s GMR gets approval to exploit S. Sumatra mine

South Sumatra coal miner PT Barasentosa Lestari (BSL) has bagged approval from central government to start production from its coal mine in Musi Banyuasin and Musi Rawas regencies in this year.

?We have got approval to exploit our mine,? the company?s official said, adding that BSL will be able to produce 300,000 tonnes of low rank coal throughout this year despite the fact that it is still waiting for transportation permit from regencies and provincial administration, the official said.

The production will increase to 1 million tonnes in 2012 and it will be gradually increased to the maximum capacity of 6 million tonnes of coal.

At the present, we are waiting transportation permit from regencies and provincial administration, as the South Sumatra provincial administration forbids us to use national road to bring coal to the port, the official said. ?We expect to get transportation permit within 1-2 months starting this month,? the official said.

BSL is a coal contract of work (CCoW) holder which has so far discovered 300 million tonnes of coal resources

BSL is wholly-owned by Indian firm GMR Group.

The coal will be used to fuel its proposed 2,000-MW power plant which will be built in the east coast of India. (denny)