Itochu to start coking coal production from Kalimantan mine 2012

Coal mining firm PT Suprabari Mapanindo Mineral (SMM) plans to start coking and high CV coal production from its Central Kalimantan mine in mid-2012.

Technical Director Takenori Murata told Coaltrans Conference participants in Bali on Tuesday that the mine will produce little over one million tones of coal per annum in the first three years of operations, ramping up to 2-3MTPA in the fourth and fifth year and 5 MTPA from the sixth year.

Murata said coal produced from the mine will be transported through 25-km haul road to Bintang Ninggi jetty port in Barito river then barged with 230-250 feet barges to Taboneo anchorage or Indonesia Bulk Terminal (IBT).

Japanese firm Itochu Corp. has 23.5 percent stake in SMM and acts as marketing agent.

According to Murata, the SMM has 100 million tones of mineable reserves, 75 percent of which are premium coking coal and the remainder are high CV thermal coal.

Murata said that currently the Company is in the process of getting necessary approval and feasibility study will be completed late this year, followed by 12 months construction period. (alex/denny)