ITMG prepares to close Tandung Mayang mine next year
Friday, November 13 2015 - 01:27 AM WIB
IDX-listed coal mining company PT Indo Tambangraya Megah Tbk (ITMG) is making preparations to close down its Tandung Mayang concession in East Kalimantan next year.
ITMG Director A.H. Bramantya Putra said Thursday that among of the preparations are for the transfer of assets and workers to another unit of the company.
?Tandung Mayang next year will enter mine closure stage. All assets and employees will be transferred to one of our business units PT Tambang Raya Husada Tama which is an internal service of contract of PT Indominco Mandiri,? Bramantya said.
ITMG first announced in May its plan to cease mining activities at Tandung Mayang, run by subsidiary PT Kitadin, due to depleting reserves.
According to company website, Kitadin?s Tandung Mayang mine has a concession area of 2,338 hectares and is located in Tandung Mayang, in the Regency of East Kutai, East Kalimantan. The coal has calorific value of 6,700 kcal/kg and sulfur content of 1.6 percent.
Elsewhere, Bramantya said that reserves at the company?s Joro mine is also set to deplete mid 2017. As such, the company is looking to acquire new concession to replace the Jorong mine.
Editing by Reiner Simanjuntak