Kideco sets to expand capacity to 40MTPA

Indonesia-listed energy firm PT Indika Energy Tbk is set to boost production capacity of its coal mining unit PT Kideco Jaya Agung to 40 million tons per annum (MTPA) from 24.7MTPA in 2009.

Indika said in a presentation last week that Kideco will optimize the development of its largest coal pit called Samarangau, which has resource of 694 million tons (based on JORC report in June 2009) and mineable reserves of 348 million tons. Coal produced at Samarangau has CV of 4,275 Kcal/kg.

Kideco will also build a new haul road and bridge connecting another pit called Susubang to its crushing plant.

Susubang is a smaller mine with 14 million tons of mineable reserves and 21 million tons of total resources. The mine produces coal with CV of 5,277 Kcal/kg.

To support the expansion, Kideco will increase investment in heavy equipments such as dumptrucks, excavators and increase capacity of loading facility at Tanah Merah coal terminal and crushing plant.

The company did not say when the capacity expansion will be achieved.

Kideco is the country?s third largest miner with 50,400 ha concession. Indika has a 46 percent stake in Kideco. (denny)