Intitirta delays first coal production

Indonesia-listed firm PT Duta Pertiwi Nusantara is seeking fresh funds amounting to Rp 100-200 billion (1 US$ = Rp 8,531) to develop its coal unit PT Intitirta Primasakti in Sarolangun regency, Jambi province.

The company?s President Director Siang Hadi Widjaja said it has several options to raise the funds, including bank loan and right issue.

He said that the mine is still in exploration stage. ?We are waiting for a permit from forestry ministry. Once we get the permit, we will start to build mine infrastructure,? he said.

The company plans to start coal production within 15-18 months after the company gets the license with a capacity of 500,000-750,000 tonnes per year, he said.

Earlier, the company intends to start coal production in the fourth quarter of 2010.

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

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

Duta Pertiwi has a 60 percent stake in Intitirta, with PT Ayrus Prima, a local company controlled by shipping magnate Oentoro Surya, controlling the balance. (*)