Medco sees E. Kalimantan coal mine to start production 2010

Indonesian energy firm Medco Energi Mining Internasional (MEMI) expects coal production from its East Kalimantan concession could start production next year, a company official said.

CEO/Managing Director Arie P. Ariotedjo told Petromindo.Com on Wednesday that the company is currently conducting advanced exploration within the 6,000-hectare concession area, which is located in Nunukan regency.

Arie said coal from the mine has CV of around 7,000 kcal/kg (ADB) with ash content of 2-3 percent.

Arie added that the company?s spending to develop the mine would be minimum as it could use hauling road owned by logging company. More over, he said, distance from mine to Simenggaris river port is only 10-15 kilometers and another 50-km from transhipping point.

He did not give detail about production plan.

MEMI is a unit of IDX-listed energy firm PT.Medco Energi Internasional Tbk, which is controlled by Panigoro family.

MEMI, which was founded on November 2008, is Medco's arm for coal and mineral mining business. According to Arie, MEMI is still looking to acquire other coal and mineral areas in Indonesia.(denny)