Karya Bumi to start Jambi mine production mid-2009

Coal miner PT Karya Bumi Baratama plans to start production from its Jambi mine mid-2009 with initial production of 1 million tonnes per annum, ramping up to 3 MTPA within the next few years.

Director of Operations Agus Wirawan told Petromindo.Com on Monday that the company will initially conduct mining ops in 1,000 hectares area in Sorolangun regency, out of 18,000 hectares concession it owned in the province.

The company is currently in the final stage of completing feasibility study and would start construction May 2008. The company will spend US$ 10 million to develop the mine, including loading jetty in Muara Sabak and hauling road.

The company plans to sell 60 percent of its production to domestic market and the rest will go to export market such as China. Currently, the company is participating in coal supply tender held by state electricity firm PLN.

According to him, the company has reserves of 200 million tonnes with CV ranges from 4,200-4,800 Kcal/kg (AR). (denny)