Indo Setubara acquires Kalimantan coal concession

Singapore-based firm Indo Setubara Pte Ltd said it has acquired a coal mine concession in Berau regency, East Kalimantan.

Director Jagannath Samavedam told Petromindo.Com on Wednesday that the mine is slated to start commercial production in one year with first year annual output of 500,000 tonnes, ramping up to 1MTPA in the following years.

He did not give detail about the mine?s reserves and coal quality.

Indo Setubara is a unit of Indian firm Advaita Capital Pvt Ltd.

Samavedam said all of future coal production would be shipped to India to meet the company?s power plants? fuel requirement. He said the company will operate power plants with capacity of 3,000-MW in 2012.

He further said that the company is still looking to acquire more coal mines in Indonesia in the future.

Indo Stubara also has 6.62% shares at UK miner Churchill Mining whose East Kalimantan Coal Project is estimated to have more than 1 billion tonnes of resources. (denny)