Kartika Selabumi to ramp up coal production
Thursday, October 9 2008 - 04:22 AM WIB
A company senior official told Petromindo.com that production would be increased sharply after cooperation agreement with Bayan Group is expected to be completed this year or early next year.
Kartika has cooperation agreement with Bayan, under which the latter would mine, produce and offtake 1.3 million tonnes of coal. Up to September, Bayan has produced 0.9 million tonnes.
?After cooperation deal is over, we?ll be free to expand,? he said, adding that the company would set aside up to US$100 million to develop the blocks,? the official, who preferred anonymity, said.
The official said the company has appointed mining contractor PT.Bukit Makmur Mandiri Utama (Buma) to carry out coal mining at Pian Batu block with production target of 1MTPA, adding that the company has also had talks with mining contractors to carry out coal mining activities at its other four blocks.
Kartika is the second generation Coal Contract of Work holders, which operates 17,750 hectares of concession in Kutai Kartanegara regency. The company produces coal with CV range of 7,200-7,600 Kcal/kg.(denny)