Indika to spend $150m to develop W. Kalimantan coal prospects
to start coal production in 2014
Monday, June 6 2011 - 04:36 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 company said in a presentation on Monday that the company 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 for the next four-year development projects.
The company did not give figures of first coal production and installed capacity of the mines.
Indika acquired the mines which have combined concession areas of 34,200 hectares, for $18.5 million in February 2009. The mines' coal have calorific value of 3,457 to 7,206 kcal/kg, sulphur content of 0.76 ? 9.41%, ash content of 8.38 ? 52.08% and the firm pays with royalty of 3 - 5% and corporate tax of 30%. (denny)