Indomobil coal contractor unit targets 3.5m tons production

By Hiski Darmayana

Indomobil Group?s coal mining contractor unit PT Prima Sarana Gemilang (PSG) has set a higher coal production target of 3.5 million tons for this year.

The production will come from two concessions including one owned by PT Nusantara Berau Coal in Berau Regency, East Kalimantan, and another concession located in Lahat, South Sumatra.

?For the one in Lahat, we can?t publish the identity of the owner yet. We?ll mine the concession in May,? CEO for Heavy Equipment, Mining & Resources Operations at Indomobil Group, Bambang Prijono told Petromindo.com Thursday.

Bambang said realized coal production last year totaled 2.5 million tons. ?Last year, we have just started developing the Nusantara Berau Coal concession, so the realized production was smaller than the target this year, when we?ll start mining the Lahat concession,? he said.

Meanwhile, overburden removal (OB) this year is targeted at 19 million bank cubic meters (BCM). ?Aside from the aforementioned concessions, the OB target will also come from concession owned by Noble Group in Kotabangun, East Kalimantan. At the Kotabangun concession, we?re only doing the OB work, not (coal) production,? he said.

Editing by Reiner Simanjuntak