Insani Bara Perkasa starts coal production

Publicly listed manufacturing company PT Resource Alam Indonesia Tbk (RAIN) said Monday its subsidiary PT Insani Bara Perkasa has started producing coal with the current level of 25,000 tons per month.

In a statement to the Jakarta Stock Exchange, RAIN said Insani commenced coal production in the beginning of 2006 from the Simpang Pasir block of its concession in East Kalimantan. Output from the block is expected to reach 200,000 tons of coal by end of this year.

Insani, which holds a third generation of Coal Contract of Work, operates a 41,210-hectare coal mining concession which stretches from Kutai Kertanegara regency to Samarinda mayoralty. The company has identified 9 prospects in its concession.

RAIN added that Insani had also scheduled to exploit coal from the Bayur block starting the third quarter of 2006. The company expected to produce a total of 50,000 tons of coal from the block by end of 2006. (Robert)