Intitirta exploration activity stuck due to absence of forestry permit

Indonesia-listed firm PT Duta Pertiwi Nusantara reported Monday that its coal unit PT Intitirta Primasakti in Sarolangun regency, Jambi province still can not start its exploration activity due to the absence of land-use permit from the Ministry of Forestry.

The company said that due to the absence of the permit, it will also delay the process to seek loan to exploit the mine.

The company has said that the production schedule from the mine will be delayed until an unspecified time from initial schedule in the fourth quarter of 2010 because of the absence of forestry ministry?s permit. No other detail was given.

Earlier, the company?s President Director Siang Hadi Widjaja 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 on June 13.

Intitirta had carried 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. (denny)