ITM?s unit reduces size of tenement

By Ruli Setiawan

IDX-listed PT Indo Tambangraya Megah Tbk (ITM) announced on Friday that the total area of the Coal Contract of Work (CCoW) of its subsidiary, PT Jorong Barutama Greston (JBG), in South Kalimantan has been reduced from 9.556 ha to become 4.883 ha.

The tenement reduction is based on the Decision of The Ministry of Energy & Mineral Resources No. 462.K/30/DJB/2015 dated 24 February 2015 regarding the VII Reduction of Operation Production Activity in Area of JBG's CCoW.

The firm earlier said JBG is expected to close its mine in 2017. In 2013, Jorong Barutama produced 1.3 million tons of coal and will produce 1 million tons each year until the closure.

"We will definitively close mining operation at Jorong Barutama in 2017. We only exploit the remaining coal reserve and will not conduct new exploration," Leksono Poeranto, ITM's Director Corporate Affairs, said.

Editing by Johannes Simbolon