Medco?s DTSA coal mine to start production in 2015

By Hiski Darmayana

IDX-listed PT Medco Energi Internasional Tbk plans to start the commercial production of the company?s Duta Tambang Sumber Alam (DTSA) coal mine in Nunukan, East Kalimantan in early 2015, with production rate of about 400,000 tons.

Medco?s chief operating officer for power, mining and downstream operations Budi Basuki said with the start of the commercial production at the DTSA mine, Medco would be able to increase its production to 1 million tons.

At present, the company has produced 600,000 tons at the company?s Duta Tambang Rekayasa mine also located in Nunukan.

In 2011, through its subsidiary Medco Energi Mining International (MEI), Medco acquired the two coal mines which hold estimated coal reserves of about 16 million tons.

This year, the company expects to sell 600,000 tons both to local and overseas market. About 300,000 tons will be exported and the rest to be sold to domestic buyers. During the first quarter, this year, coal sales reached a total of 97,000 tons. ?We sell coal under long-term contract at average price of $82 per ton,? it told Petromindo.com.

Editing by Adianto P. Simamora