LG begins pilot production at second coal mine in RI
Friday, September 30 2016 - 12:45 AM WIB
The trading unit of LG Group said Thursday that it held a ceremony to mark the beginning of pilot production at the open-cast GAM coal mine, located on the eastern part of Kalimantan Island.
The company plans to start commercial production in January, producing 3 million tons of coal annually. It plans to increase the production gradually over the years to as much as 14 million tons, the news portal said.
The GAM is an open-cast coal mine, spanning 106 square kilometers, which is estimated to hold about 220 million tons. The company acquired a 60 percent stake in the mine in 2012 and has operational rights.
LG has signed supply contracts with utility and other businesses in India, China and other Asian countries.
The GAM is only 60 kilometers away from a nearby port, while it takes up to 300 kilometers for other mines on Kalimantan to transport coal to the coast, according to a company spokesman, who stressed that the company has an upper hand in costs over its rivals.
"Many Southeast Asian nations are rushing to build coal-fired power plants to meet the surging electricity demand in line with the rapid economic growth," he said. "The demand for goal will continue to grow, creating lucrative business opportunities for us. We will continue to secure more mining rights in Indonesia and other countries to become a major natural resources developer in Asia."
In 2007, LG acquired the MPP mine, also on Kalimantan Island, and has since been producing 3 million tons of coal annually. (*)