LG International expects to increase coal output next year

South Korean firm LG International Corporation through its Indonesian unit PT Batubara Global Energy is expecting to produce 2.8 million tonnes (MT) of coal in 2011,lower than the company?s initial target of 3.5 million tonnes, from its Kalimantan mines.

At end of Feb, 2011, LG reported that it plans to increase coal production to 3.5 million tonnes in 2011 from last year?s production of 3 million tonnes.

The total production will come from its two coal mines PT Mega Prima Persada (MPP) in Kutai Kartanegara regency, East Kalimantan, and PT Tutui Batubara Utama in East Barito regency, Central Kalimantan.

?MPP mine is our major coal output,? the company?s official told Petromindo.Com without giving the coal output figure. For next year, LG plans to produce around 3.5 million tonnes, the official added.

According to LG statement at end of Feb 2011, MPP, which has been producing since February 2009 has a reserve of 20 million tonnes left with calorific value of 6,000 kcal/kg (GAD). The mine is expected to produce 3 million tonnes of coal this year, an increase compared to last year?s production of 2.5 million tonnes.

Tutui Batubara Utama has a calorific value of 7,400 kcal/kg (GAD). The mine is expected to produce around 500,000 tonnes of coal during 2011, only equals last year?s production due to infrastructure problem.

LG International has developed coal mines in Indonesia since 2007. All the coal production is destined for export markets, including to power generation in South Korea, Taiwan and Japan. (denny)