Interex struggles to obtain permit from Forestry Ministry

East Kalimantan coal miner PT Interex Sacra Raya is still struggling to obtain land-used permit from the Forestry Ministry to exploit some areas of its mine, which are located in protected forest, a company official told Petromindo.Com last week.

The official said that that if the ministry further delayed issuing such permit, the company would not be able to exploit the areas in the protected forests. Of the 15,650 hectare area of the mine, almost half is situated in protected forests. The official did not give further details.

Since almost half of the mine is located in protected forest, the company could only produce a small quantity of coal, that is 100,000 tonnes per year, according to the official.

The coal has a calorific value of around 5,100-6,000 kcal/kg (GAR), high ash and 1 percent of sulphur content.

Interex is unit of investment firm PT Northstar Group.

Northstar has another coal unit, called PT Tunas Muda Jaya, also located in Paser regency, which is planning to produce around 800,000 tonnes during 2011, the same with last year?s output, the official added.

Tunas Muda Jaya has started coal production since 2008. (denny)