Kenertec acquires 40 percent stake in E. Kalimantan coal project

South Korea’ Kenertec Co said on Thursday it has secured a 40 percent stake in Nunukan, East Kalimantan coal project.

 

Kenertec paid US$2 million for the stake in the Nunukan coal project owned by PT Nuansa Energi Persada, which is estimated to hold at least 200 Mt of reserves.

 

The mine’s annual production rate is about 3 Mt, with operations to last for about 30 years, Kenertec said in statement.

 

“The calorific value of the coal in Nunukan is about 6,300 kcal/kg,” the company said. “We aim to start production by as early as 2010, and sell the supplies to domestic and foreign generators,” the company added.

 

Last month, Kenertec Co., Posco Engineer & Construction Co. Ltd., Samsung Securities Co. Ltd signed a deal for coal liquefaction project with PT Nuansa Cipta Coal Investment worth of US$5.5 million and a $2 billion railway project in East Kalimantan.

 

The project with PT Nuansa Cipta Coal Investment and POSCO Engineering and Construction, a unit of POSCO Co Ltd, will begin six months after the deal is signed and is one of the largest planned coal-to-liquids plants.

 

The coal liquefaction project is divided into two stages:  The first stage would cost US$2 billion to produce about 30,000 barrels per day (bpd) for five years. The second stage would cost US$3.5 billion to add another 70,000 bpd, increasing total capacity to 100,000 bpd.(*)