JPC barely in production as price plunges

By Edgar Subroto

Jambi coal miner PT Jambi Prima Coal (JPC), a coal unit of IDX-listed PT Renuka Coalindo is only producing small quantity of coal for 8 month period ended November this year as it became unfeasible to exploit low rank coal with the current price.

As of November, according to Renuka's financial year report JPC only produced about 50,000 tons of low rank coal from its concession in Mandiangin sub-district of Sarolangun regency.

Earlier, the company was targeting to produce a total of 600,000 tons of coal from JPC in financial year March 2012- April 2013.

JPC had also appointed PT Bangun Karya Pratama Lestari since March 2012 to replace PT Makmur Tirta Coal Mandiri as a mine contractor, but there was no significant coal production volume yet from the mine, a source in the company told Petromindo.com.

The company had also appointed CV. Sarana Multi Teknik to dredge the river to allow the company to use a river instead of long-distance hauling road in order to cut transportation cost. ?Renuka is currently undertaking studies to establish feasibility of reducing transportation costs using river barging from mine mouth,? said President Commissioner Vishwanart Mathur in a statement in early August.

In September 2012's statement, JPC's JORC analysis revealed 120.3 million tons of coal resource and 92.6 million tons of reserve, enough to sustain up to 18 years of mine life at the production rate of 5 million tons per annum after 3 years of production ramp up from the current rate. PT GMT Indonesia issued the JORC reserve analysis.

The company expects to produce 5 million tons per year in 2016, currently approaching Indian and Indonesian buyers for long term contracts.

Editing by Er Audy Zandri