Kospo acquires coal mine in E. Kalimantan

South Korean power utility Korea Southern Power Co. Ltd. (Kospo) has entered coal mining business in Indonesia, after acquiring 10 percent stake at PT Kedap Sayaaq, which has a coal mine in West Kutai regency, East Kalimantan.

The industrial source told Petromindo.Com that Kospo acquired the mine in June this year. The mine is expecting to start coal production in early next year with volume of 2 milllion tonnes in the first year and ramping-up to 3 million tonnes in 2013.

The reserve from the mine is around 80 million tonnes and the type of the coal being low rank, the source said.

According to the source, the remaining 90 percent stake in the mine is also owned by South Korean company, but the source did not give the name.

At present, Kospo is building coal-fired power plant in South Korea with a capacity of 2x1000 MW designed to be fired by low-rank coal. The power plant is expected to be completed in 2015. (denny)