Kideco to increase coal output next year
to produce 40MTPA in 2015
Tuesday, August 24 2010 - 02:14 AM WIB
?For next year, no decision yet has been made on the company?s production target. Surely there will be an increase for next year, but even if there is an increase, it will be less than 15 percent of this year?s target," managing director CH Richard Lee said.
He said the company is on track to produce 29 million tons of coal this year, up from 24.7 million tons last year, despite the recent closure of its mine by the government recently and unfavorable weather conditions.
All the coal for this year?s production has been contracted with 25 percent allocated for domestic market and the remaining for export market.
This year, Kideco will ship 5 million tons and 3 million tons of coal to India and China, respectively, slightly higher compared to last year?s export, he said, adding that aside from both countries, Kideco also ships its coal to Taiwan, South Korea, Japan and some to European countries, he said.
Production in the January-July period reached 16 million tons, he said.
He also said that the company will gradually increase its output to the ultimate target of 40 million tons per annum (MTPA) starting 2015.
Kideco is the country?s third largest miner with 50,400 ha concession. Indonesia-listed energy firm PT Indika Energy Tbk has a 46 percent stake in Kideco and South Korean firm Samtan Co. Ltd 49 percent stake and local company PT Muji Inti Utama 5 percent stake.
In a May presentation, Indika said that to reach 40 MTPA coal production, Kideco will optimize the development of its largest coal pit called Samarangau, which has resources 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. (denny)