MEL obtains land-use permit for mine exploration

By Edgar Subroto

East Kalimantan coal miner PT Mahakam Energi Lestari (MEL), a coal unit of PT Multi Mamahak Batubara (MMB) has recently obtained land-use permit from the Indonesian ministry of forestry to start exploration on its mining concession in Long Bangun district of West Kutai regency.

MMB is a wholly-owned unit of Kangaroo Resources Limited (KRL), in which PT Bayan Resources has 56.05 percent stake in KRL

"MEL has secured 1,516 ha forest area, from the total area of 5,000 ha, to start coal exploration activity valid until 30 October 2014," the company has said.

MEL is part of Mamahak coking coal project comprising four coal mines.

At present, Mamahak coal project was temporarily suspended due to ongoing industrial dispute between its mining contractor, PT Putra Perkasa Abadi (PT PPA), and their on-site personnel. Mamahak has produced around 230,000 tons during 2012.

The company expects production at Mamahak will continue to be affected during January, however KRL will continue its focus on barging operations during this period to realise coal revenues from the current coal stockpiles, KRS said in Jan 9.

Editing by Er Audy Zandri