LG International to increase Kalimantan coal production

South Korean firm LG International Corporation plans to increase coal production from its Kalimantan mines to 3.5 million tonnes in 2011 from last year?s production of 3 million tonnes.

The company?s head of coal trading team C.H Lee said last week that 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, which produced 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, equal to last year?s production, due to infrastructure problem.

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