Kalimantan Energi to resume coal production next year

South Kalimantan miner PT Kalimantan Energi Utama is planning to resume coal production in the first half of next year after being stopped since 2006.

The Company?s Manager Peter Sanusi told Petromindo.Com that preparation to resume mining is currently underway, including selection of mining contractors.

He said production would be set at around 50,000 tonnes per month with India as main market destination. ?Talks with buyers have commenced,? he said.

The company was forced to close down its mine last year when the government imposed fixed-rate levy on coal export, making the company, which produced coal with CV range of 5,500-5,700 Kcal/kg unable to continue production, Peter said.

Peter said the company would start mining its 200-hectares pit, which has 3 million tonnes of reserves. The company?s mine is located close to Arutmin Indonesia?s mine in Satui. (denny)