Insani Bara Perkasa to raise coal output to 500,000 ton in 2007

Publicly listed manufacturing company PT Resource Alam Indonesia Tbk (RAIN) said on Tuesday that its wholly owned coal miner PT Insani Bara Perkasa (IBP) was planning to increase output to 500,000 tonnes in 2007 from 130,000 tonnes in 2006.

RAIN?s corporate secretary Surya Martara Tjahaja told Petromindo.com on Wednesday that of the total output in 2006, about 100,000 tons were sold to local spot market in Cirebon. This year, IBP expects to sell more of its coal to spot market in China, the Philippines and Taiwan.

?IBP has not any contract (with foreign buyers) yet. We are still a small producer,? Surya said

IBP has identified nine prospects in its concession, two of which have come into production, namely Simpang Pasir Block and Bayur Block. The other 7 prospective blocks are still in exploration stage.

?They (the 7 blocks) are going to enter construction stage soon but we still have problem with permits,? Surya added.

IBP, 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, East Kalimantan. IBP commenced coal production in the beginning of 2006. (denny)