Insani Baraperkasa to complete coal mining feasibility study

East Kalimantan-based coal miner PT Insani Baraperkasa is about to complete its feasibility study on the southern part of its coal mining concession.

According to parent company PT Resource Alam Indonesia Tbk (RAIN), Insani will produce between 300,000 and 500,000 tons of coal in the first year of production.

?The production will be increased to one million tons for the next years,? RAIN said in a statement to the Jakarta Stock Exchange recently.

RAIN added that its subsidiary was also in the process of securing financing for further operation.

Insani operates a 41,210-hectare coal mining concession which stretches from Kutai Kertanegara regency to Samarinda mayoralty. The company obtained the permit from the government to start a feasibility study in August 2002.

Based on the analysis by PT Sucofindo, the company's coal is of bituminous high volatile type with calorific value relatively high at between 4,300 and 6,000 kilocalories/kilogram.

RAIN, previously known as PT Kurnia Kapuas Utama Tbk, owns 99.99 percent of Insani. (robert)