Mahakam Sumber Jaya plans to commence coal production in 2004

East Kalimantan-based coal-mining firm said it had entered into feasibility study stage and excpected the study to be completed by end of this year.

?The Feasibility Study is conducted by the Bandung Institute of Technology,? Eddy Sumarsono, Mahakam?s General Manager, told Petromindo.Com recently.

Mahakam, sister company of another East kalimantan coal producer PT Tanito Harum has a 20,000 hectare-coal concession,located in Kutai Kartanegara regency near capital city Samarinda.

Eddy said Mahakam hoped that it could commence its coal production by the end of 2004 after 8-month of construction stage.

Eddy declined to reveal the company's coal reserves or preliminary production plan. An industry who declined to be named, however, said that the mine is likely to be designed to have peak production capacity of around 4 million tons per annum. (robert)