Jorong Barutama to close the mine in 2017

By Tri Subhki R

PT Jorong Barutama Greston, a coal mining company and subsidiary of PT Indo Tambangraya Megah Tbk (ITM), is expected to close its mine in South Kalimantan 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.

Leksono also said that the company is considering acquiring new coal concession since coal reserve in the concession of Jorong Barutama, a second generation Coal Contract of Work (CCoW) holder, will be depleted in few years to come. The CCoW expires in 2028.

"We are looking for any economically viable mine acquisition with any coal quality and reserve," Leksono said. He added that ITM's coal production will be lower when Jorong Barutama ends its operation.

Jorong Barutama started production since December 1999 and produces coal with calorific value of 5,300 - 5,800 kcal/kg. It has produced 40 million tons of coal since its maiden production.

Editing by Johannes Simbolon