KSM in negotiation with several contractors to resume production

By Edgar Subroto

East Kalimantan coal miner PT Kartika Selabumi Mining (KSM) is currently negotiating with several recognized contractors to resume coal production, a source in the industry told Petromindo.Com.

One of the contractors include Leighton, the source said without giving a negotiation deadline.

KSM has apparently ceased production in the last 6 months, sent its employees home due to financial difficulties. In Oct, 2012, KSM filed a lawsuit against its previous contractor PT Sinar Intijaya Putraperkasa at the Central Jakarta District Court, demanding US$32.3 million and Rp350 billion worth of compensation.

According to KSM's website, the company plans to expand and ramp up production to 2 million tons per annum (mtpa). Its 5 year plan until 2015 is to expand current mining areas in CCoW and develop new areas to produce 1 million in 2013 and 1.5 million in 2014 and 2 million tons onwards.

KSM mine is located in the Sub District of Kotabangun, Muara Muntai, Loa Kulu, Kutai Kartanegara regency.

Editing by Er Audy Zandri