Intitirta delays coal production to 2010

IDX-listed firm PT Duta Pertiwi Nusantara said its Jambi-based coal mining subsidiary PT. Intitirta Primasakti will come onstream in the fourth quarter of 2010, a one year delay from the initial schedule of late 2009.

?We are still waiting for exploration results to bring the mine onstream in the fourth quarter of 2010,? President Director Siang Hadi Widjaja said during a public expose on Thursday, adding the company would start production with a capacity of 500,000-750,000 tons per year.

Hadi said that the firm would focus on domestic users such as state-owned electricity firm PT Perusahaan Listrik Negera (PLN) but the company had not yet signed any contracts .

Earlier, the company reported that it would invest up to US$100 million to bring the mine into production in late 2009.

Intitirta is carrying out a drilling program to obtain JORC-compliant resources. The mine is believed to have an estimated 100-200 million in coal resources with CV range of 5,000-5,700 Kcal/kg, Hadi said in June last year.

Intitirta operates a 46,000 hectares concession in Jambi, which will be reduced to 25,000 hectares once production has started.

Duta Pertiwi has 60 percent stake in Intitirta, with Peta Airus, a local company controlled by shipping magnate Oentoro Surya, controlling the balance. (Kanti)