KSM's unit offers partnership to develop E. Kalimantan coal mines

PT Indah Mining Nusantara (IMN), a member of coking coal producer PT Kartika Selabumi Mining (KSM) is offering a partnership up to 50 percent stake with value of US$12.5 million to develop its two coal mines in Kutai Kartanegara regeny, East Kalimantan.

IMN has two IUP mines PT Gamma Mitra Sejahtera (GMS) and PT Kaltim Bio Energy (KBE) which plan to start initial production by the end of this year and in July next year, respectively.

IMN, which has 40 percent stake in GMS and the remaining stake was held by Sinarmas Group will be able to produce 50,000 tonnes per month of high CV thermal coal (5,653? 7,382 kcal/kg)

GMS has explored around 800 hectares from the total area of 2,795 hectares and identified to have coal deposit more than 2 million tonnes.

Meanwhile, KBE mine, which IMH has 100 percent stake has a total area of 1,595 hectares with inferred resources more than 2 million tonnes. The full exploration activity is expected to start early next year to upgrade its coal resource and reserve.

KBE mine has a coal calorific value of 6,500-7,361 kcal/kg. The mine is expecting to produce around 30,000-40,000 tonnes per month, starting fourth quarter 2012.

Both mines are located just 4-7 kilometers away to river port in Mahakam river.

For further information, please contact David Cornelius, Director, david@ksmcoal.com. (denny)