Indika is on track to start W. Kalimantan coal production in 2014
Monday, September 5 2011 - 03:06 AM WIB
Indika has acquired two coal mining firms, namely PT. Sindo Resources (SR) and PT. Melawi Rimba Minerals (MRM), which both have coal concessions in Melawi regency.
The official said that the company has started the land clearing works for its haul-road connecting the mine to the planned port. According to the official, Indika is studying to build a port in South Kalimantan area which is within a distance of around 100 kilometers from the mines.
?We have already economic model of the mine and with prevailing coal price we think the mine is feasible to develop,? the official said. The company is expecting to produce maximum capacity of around 10-15 million tonnes per annum of coal, the official said without giving further details.
In June 2011, the company said in a presentation that it is conducting exploration drilling at the mines. During the drillings, it has thus far found 109 coal outcrops. The company is also studying coal river transportation system with pit-to-port distance of around 100 km
The company expects to spend US$100-150 million in working capital within the four-year planned development.
Indika acquired the mines which have combined concession areas of 34,200 hectares, for $18.5 million in February 2009. Coal from the mines has calorific value of 3,457 to 7,206 kcal/kg, sulphur content of 0.76 ? 9.41%, ash content of 8.38 ? 52.08%. The firm pays a royalty of 3 - 5% and corporate tax of 30%. (denny)