Indo Mines starts S. Kalimantan coal production

Australia-listed mining firm Indo Mines Limited announced on Thursday that the company?s first coal mining operations have commenced at the Mangkok coal project in north of Banjarmasin, South Kalimantan.

The company said in statement that it is on schedule to produce 50,000 tonnes per month of high quality thermal coal by August 2010.

The Mangkok project is an open-cut mining operation that will commence production adjacent to an area previously mined. The removal of overburden is currently being undertaken and the company will also continue further exploration and in-fill drilling whilst in operation to identify new coal seams on the concession, it said.

The company is currently in negotiation with several international commodity trading groups to secure take off agreements for the project.

Indo Mines has several projects in Indonesia, including the development of the Jogjakarta Pig Iron project. (kanti)