Medco Mining?s coal unit to start production in 2012
Wednesday, September 7 2011 - 05:51 AM WIB
Medco Energy Mining Internasional CEO Arie P Ariotedjo told Petromindo.Com on Wednesday that the company is still waiting for the land-use permit from the Ministry of Forestry. ?Our letter is already on the Minister's desk, hopefully this week or next week the permit will be issued,? he said.
Medco Mining has been struggling to secure the permit since March.
Medco expects to produce around 500,000 tonnes of coal in the first year, Arie said adding that the coal will be sold through a European trading firm. He declines to mention the name of the trader.
In 2009, Arie told Petromindo.Com that the company?s spending to develop the mine would be minimum as it could use hauling road owned by logging company. Moreover, he said, the distance from the mine to Simenggaris river port is only 10-15 kilometers and from there just another 50-km to the transshipment point.
Arie said coal from Nunukan mine has CV of more than 7,000 Kcal/kg with 3 percent sulfur content.
Medco Energy Mining is a unit of IDX-listed energy firm PT.Medco Energi Internasional Tbk, which is controlled by Panigoro family. (giok)