KBM ramps up 2009 coal production

East Kalimantan coal miner PT Kaltim Batu Manunggal (KBM) is seeking to increase production by 15 percent this year from around 1.5 million tonnes last year, a company official said.

Director Bob Daud told Petromindo.Com on Thursday that the increase would be contributed by the company?s new mines in Kutai Kartanegara, which is slated to start production mid-2009 at initial rate of 30,000 tonnes per month and another mine in Pasir regency which will come to production months after.

Bob said the company plans to sell 60 percent of its output this year to Taiwan, with TaiPower as main customer. The rest of the production would be sold through traders to India and China, he said.

The company currently producing coal from its 5,000 hectares concession in Kutai Kartanegara regency with mineable reserves of 20 million tonnes. The company produces coal with CV of 6,100-6,300 Kcal/kg.

Bob said the new mines in Kutai and Pasir has combined area of 10,000 hectares and would produce coal with CV of 5,800-6,500 kcal/kg.(denny)