ITM to start TIS coal exploitation in 2019

By Tri Subhki R

IDX-listed coal mining company PT Indo Tambangraya Megah Tbk (ITM) is planning to exploit the coal mines of its newly-acquired subsidiary PT Tepian Indah Sukses (TIS) in 2019.

ITM officially acquired the IUP license coal firm, which operates concession adjoining the concession of another subsidiary PT Trubaindo Coal Mining, in September 2017.

?We will start producing 2 million tons of coal in 2019,? Yulius Kurniawan Gozali, Finance Director of ITM, said on Tuesday. TIS has 4.7 million tons of coal reserves with calorific value at 6.400 kcal/kg, the same quality with Trubaindo?s coal.

AH Bramantya Putra, Operations Director of ITM, unveiled that TIS? coal seam is the same as Trubaindo?s coal seam. ?We believe there are more coal resources there,? he said. TIS owns 2,065 hectares of concession in Melak, East Kalimantan province.

Bramantya said that TIS is a greenfield coal mine and it has never been exploited before due to the logistic issue. He added that ITM is planning to carry out preparation at TIS, including connecting hauling road to the main 100 km-long ITM?s coal hauling road in Melak Group (Trubaindo and PT Bharinto Ekatama).

Bramantya also said that ITM will conduct exploration drilling at TIS to study the potential coal reserves and resources. ?It explains why we need one year to study and prepare the operation at TIS,? he said.

Editing by Reiner Simanjuntak