Indominco?s coal concession area reduced

By Romel S. Gurky

Courtesy of ITMG

Coal miner PT Indominco Mandiri, a subsidiary of IDX-listed coal mining firm PT Indo Tambangraya Megah Tbk (ITMG), has reduced its coal concession area in East Kalimantan Province to 24,121 hectares from 25,121 hectares.

ITMG said in a statement Friday that the reduction in the coal concession area forms part of the amendment of Indominco?s coal mining contract of work (PKP2B), signed with the government on December 15. The amended contract was received by the company on December 30, it added.

Indominco, which was set up in 1988, previously held a combined 25,121-ha concessions in Bontang, Kutai Kartanegara and East Kutai regencies, East Kalimantan, divided into 18,100 hectares in the West Block and 7,021 hectares in the East Block, according to ITMG website. The coal in these blocks has a calorific value of 5,900 - 6,500 kcal/kg coal and was formed along the Balikpapan Late Miocene and Pulubalang Island formations. The sub-bituminous coal and bituminous has sulfur content of 0.7 - 1.8 percent.

Editing by Reiner Simanjuntak