Lahai Coal to commence production in Q4 2007

Coal miner PT Lahai Coal, a wholly-owned subsidiary of Australian mining firm BHP Billiton said it will begin producing coal from its mine in Muara Teweh, Central Kalimantan in the fourth quarter of 2007.

The coal will come from Haju Block in Maruai I and Maruai II villages on 4,787 hectares of land in Laung Tuhup district, and the company will invest US$50 million in construction of the block, Lahai Coal president director Indra Diannanjaya said at the weekend.

"It will begin producing coal in the last quarter of this year," Indra said

In Oct 2006, the company said that the Haju project is currently in a feasibility study phase, which is aiming to bring mining on line in the second half of 2007.

The production capacity is expected to produce 720,000 tons to 1 million tons per year of coal, he said.

"We will produce the two kinds of coal with a composition of 60 percent of cooking coal and 40 percent of thermal coal. The coal will be exported to France, Italy, Japan, Korea, and Thailand, among others," he added.

Lahai Coal signed a Coal Contract of Work (PKP2B) with the government on Sept 6, 2000 to carry out mining operation in total area of 46,620 hectares in Central Kalimantan and East Kalimantan province.

Lahai Coal will transport coal products either by land or river, namely Barito river using barges from Muara Tuhup port to the offshore port. (*)