JPC in dredging project extension talk

By Edgar Subroto

Jambi coal miner PT Jambi Prima Coal (JPC) is in talk of extending the dredging project to cut transportation cost by allowing the company use river barging instead of long-distance hauling road.

The discussion is still on going. ?We expect to conclude it soon,? a source in the company told Petromindo.com. The previous agreement is valid for 3-month only until December 23, 2012.

Under the deal JPC with other mining company PT Minemex Indonesia entered into a dredging project for coal transportation with PT Indo Borneo Asia Internasional and PT SAC Nusantara.

JPC is a coal unit of IDX-listed PT Renuka Coalindo.

President Commissioner Vishwanart Mathur in a statement in early August last year said that JPC had appointed CV. Sarana Multi Teknik to dredge the river. ?Renuka is currently undertaking studies to establish feasibility of reducing transportation costs using river barging from mine mouth,? he said.

JPC is expecting to produce around 1 million tons of coal for 2013 financial year, starting from March 2013-April 2014. The company produced around 300,000 tons of low rank coal during 2012 financial year.

Editing by Er Audy Zandri