Indika?s C. Kalimantan coal mine to produce 1m tons this year

By Thomas Sembiring

Petromindo

IDX-listed coal firm PT Indika Energy Tbk said that its subsidiary Central Kalimantan coal mining PT Multi Tambangjaya Utama (MUTU), which started production a few months ago, is expected to produce a total of 1 million tons of coal this year.

This was said by Indika President Director Arsjad Rasjid to Peromindo.com on Monday. He said that MUTU had not been able to start production since it was acquired by Indika in 2012 due to the weak coal price environment.

As reported by this portal last month, MUTU began production during the first quarter of this year, with coal shipment volume of 7,000 tons during the period worth about US$0.6 million.

In 2012, Indika acquired an indirect 85.0 percent equity interest in MUTU, a high-rank bituminous thermal and coking coal holding a third-generation CCoW based in Central Kalimantan, with a concession area of 24,970 hectares. Located approximately 30 km northeast of Ampah city and approximately 250 km north of Banjarmasin, MUTU has developed coal hauling roads with a capacity of 3.0 million tons per year and a barge port with a capacity of 5.0 million tons per year.

Editing by Reiner Simanjuntak