Indian firm to start Mantimin coal production in 2012

Indian firm IL&FS Maritime Infrastructure Company Limited plans to start commercial coal production in 2012 from its Indonesian newly acquired mine PT Mantimin Coal Mining in South Kalimantan.

The company is planning to produce 1 million tons of coal per annum and ramp up the output up to 5 million tons in the next couple year, an industry source told Petromindo.Com.

At present, the company is studying three options for the construction of haul road to bring the coal to river port. The decision is expected to be concluded in mid 2011. The company is also scouting for mine contractor to develop the mine.

The company bought the mine in February-March this year from PT Hasnur Group. Mantimin, a coal contract of work (CCoW) holder, is located in Hulu Sungai Tengah, Hulu Sungai Utara and Tabalong regencies, covering an area of 100,000 hectares.

A Hasnur official last year said that Hasnur had estimated the total investment needed to build the mine at around US$150 million, including for the construction of 130-km haul road from mine to port. (denny)