Indo Wana plans to start coal production later this year

Coal mining company PT Indo Wana Bara Coal Mining, a 65 percent owned subsidiary of IDX-listed PT Sekawan Inti Pratama, is expected to start production at its mine in East Kalimantan in the fourth quarter of this year, Kontan reported on Thursday.

The paper quoted Indo Wana President Director Chandra Purwanto as saying that full production will be run in 2017. In the initial stage, Indo Wana will run production at a rate of about 20,000-30,000 tons per month.

The company, which holds a 5,000-ha coal concession in West Kutai Regency, East Kalimantan, with coal resources estimated at 533.31 million tons, and reserves estimated at 288.1 million tons, suspended mining operations in November of last year due to tighter government regulation including requirements for miners to have so-called clean and clear (C&C) certification, and permit to carry out export.

President Director of Sekawan Christian V. Ponto said Indo Wana has already obtained the C&C certification.

Meanwhile, Chandra said that the company, which produces low rank coal with CV of 3,900 kcal/kg, has already obtained a would-be local buyer for its coal, but declined to disclose its identity.

He added that the company is also seeking to export part of the coal production including to India. The company is currently in discussion with potential buyers in Indonesia.

Elsewhere, Kontan said Sekawan is also looking to develop a 2x100 MW coal-fired power plant in East Kalimantan, and is currently in the process of seeking a partner to realize the project, as part of business diversification strategy. The company is also planning to enter coal mining services business. (*)