Mega Alam Sejahtera to boost coal output

PT. Mega Alam Sejahtera (MAS), a coal unit of IDX-listed mining firm PT ATPK Resources Tbk, plans to gradually increase its coal production to 150,000 per month, starting this year, from a mere 298,000 tonnes last year. All the coal is of low rank quality.

The parent company said in its annual report that MAS, which started coal production in December 2009, had problems such as unfinished mine infrastructure and bad weather in 2010, which made it only able to produce around 298,000 tonnes.

In December 2010, Director for Operation Saur Maruli Silalahi said that the company was unable to meet the production target due to heavy rainfalls as well as land disputes with local residents in some parts of the company?s concession areas. In addition to such problems, the production was lower than expected because the construction of the company?s barge loading conveyor (BLC) has not been completed.

To boost its coal production, the company has appointed PT Pacific Prima Coal as mine contractor for MAS. The company has also in coal offtake deal with PT Bara Jaya Utama, the parent company said.

At present, the company and PT Bara Jaya Utama have a commitment to trial shipment with Indian buyer, but ATPK did not mention the name of the Indian buyer, saying only the firm is eyeing a long-term coal supply deal with the Indian company, it added.

The mine is located in Berau regency, East Kalimantan and it has coal resource of 85 million tonnes with calorific value of 4,800-5,100 kcal/kg. (denny)