India?s SPML Infra starts W. Kutai coal production

PT Vardhman Mining Services, a coal unit of Indian firm SPML Infra Limited (formerly Subhash Projects and Marketing Limited), has started coal production at its coal mine in West Kutai regency, East Kalimantan.

The company?s senior official told Petromindo.Com that its subsdiary PT Bina Insan Sukses Mandiri (BISM), which runs the coal mine, is currently producing around 50,000 tons per month. The mine started producing coal since last June.

?Right now we?re building infrastructure to increase our production capacity for next year to 100,000 per month,? the official said.

In the next 2-3 years, the company plans to boost its coal output by 4-5 million tons of coal per annum.

The company is selling its coal to end-users as well as traders. The company has already buyers for its coal output over the next six months. ?After six month, we are open for new buyers,? the official added.

The mine is located just 5 kilometers away from Mahakam river and its river port can accomodate 300-feet barges.

According to the company?s website the mine covers an area of 5,000 hectares with reserve amounting to 100 million tons and gross calorific value of 5,200-5,600 kcal/kg. (denny)