Mega Alam Sejahtera to produce 1.5 MT of coal next year

PT. Mega Alam Sejahtera (MAS), a coal unit of Indonesia-listed mining firm PT ATPK Resources Tbk, plans to increase its coal output to 1.5 million tonnes and 1.8 million tonnes next year and in 2013 respectively, from this year?s target of 720,000 tonnes.

MAS has completed its mine infrastructure construction, including expansion of haul-road, barge loading conveyor, crusher and procurement of additional heavy-duty equipments to enable achievement of the next two year target, the parent company said in statement.

The company has also started to open new pits in North Block and South Block.

MAS, which started coal production in December 2009, has had problems such as unfinished mine infrastructure and bad weather in 2010, which made it only able to produce a total of 300,000 tonnes.

To boost production the company has appointed PT Pacific Prima Coal as mine contractor.

The company also has a coal offtake deal with PT Bara Jaya Utama.

The mine is located in Berau regency, East Kalimantan within an area of 3,274 hectares and it has mineable coal reserve of around 38.5 million tonnes with calorific value of 4,800-5,100 kcal/kg and 40% total moisture (TM). (denny)