Lanna delays coal production from E. Kalimantan mine

Coal miner PT. Singlurus Pratama has delayed the commercial production of its mine in Kutai Kertanegara regency, East Kalimantan to the end of second quarter 2009 from the earlier schedule of end 2008.

?The Coal Mining Project No.3 (Singlurus Pratama) has not started its coal production and distribution in the first quarter of 2009. However, it is expected that this coal mining project will start generating revenue within the end of second quarter of 2009,? Thai parent company Lanna Resources Limited said in quarterly report last week.

The company did not specify the reasons behind the delay.

According to a report released by Lanna in July 2008, initial assessment indicated the coal mine has mineable reserve of approximately over 25 million tons. Production and distribution is expected to start by end of 2008. It is expected to produce 1 million tons in the first year (2009) and the output will be increased to 2 million tons in the following years.

Singlurus Pratama entered into a coal supply deal with Siam City Cement Public Co., Ltd on Sept. 30, 2008, under which the former will deliver 70,000 tons of coal to the the latter in two shipments scheduled between October 2008 and June 2009. (denny)