India's Janani continues delaying coal production in Kutai

Thursday, October 25 2012 - 05:51 AM WIB

By Edgar Subroto

PT Kutai Nyala Resources (KNR), an Indonesian coal unit of Indian trading firm Janani Holdings, said that it had to continue delaying production from its coal mine in Kutai Kartanegaraa regency, East Kalimantan province, due to the problem of overlapping with its neighboring coal concessions.

?KNR has pursued a series of negotiations with those of the nearby coal concessions, but so far there is no way-out yet resulted from their negotiations,? an industrial source told Petromindo.com without giving further details on Thursday.

The source said that there had been no certainty on when the problem will be solved, although the company had planned to resume its coal production from the mine since the middle of this year.

In July 2010, KNR said that it planned to start production in October 2010 with initial production at around 50,000 per month and after a few months it would be increased to 150,000 per month.

The CV of the coal is around 6000 kcal/kg (ADB).

The company, which has three IUP (mining licenses) in the area, is building a 300-meter conveyor belt stretching from stockpile to jetty on the side of Mahakam river.

Editing by Benget Besalicto Tnb.

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