ITMG unveils plan to close E. Kalimantan mines
Monday, May 22 2017 - 03:21 AM WIB
IDX-listed coal mining company PT Indo Tambangraya Megah Tbk (ITMG) said that its East Kalimantan coal subsidiaries PT Kitadin (Embalut) and PT Indominco Mandiri are expected to enter their final stage of mining operations in 2019 and 2021.
This was revealed by ITMG in its first quarter 2017 financial reports published last week. The company said that the final stage of mining operations will be followed by mine closure process. No further details were provided.
Kitadin (Embalut) is expected to produce 1 million tons of coal this year, while Indominco 15.3 million tons.
According to ITMG website, PT Kitadin was established on January 25, 1978 and holds two coal Mining Rights (KP) for Embalut and Tandung Mayang.
The Embalut mine covers 2,973 hectares in Embalut village, Kutai Kartanegara regency, East Kalimantan. The coal is sub-bituminous with a calorific value of 5,850 kcal/kg and sulfur content of 0.3 percent.
Tandung Mayang?s 2,338-ha concession is located in Tandung Mayang village, in the regency of East Kutai, East Kalimantan. ITMG said last year it was also closing down the mine due to depleting reserves.
Indominco Mandiri, established on November 11, 1988, owns 25,121-ha concessions located in Bontang, Kutai Kartanegara and East Kutai regencies, in East Kalimantan, divided into two blocks. The coal in these blocks has a calorific value of 5,900 - 6,500 kcal/kg coal, and has sulfur content of 0.7 - 1.8 percent.
Editing by Reiner Simanjuntak