Mercator sees increased Indonesian coal production

Singapore Exchange-listed Indian shipping firm Mercator Lines Limited plans to produce a little below 2 million tonnes of coal from its Kalimantan mines in 2010, an increase compared to 1.6 million tonnes will be produced this year.

The company?s mine in Petangis, Tanah Grogot regency, East Kalimantan, will produce 1.3 million tonnes compared to 1 million tonnes this year, he said. The Petangis mine produces coal with CV of 5,400 Kcal/kg (ADB) with mineable reserves of 12 million tonnes, VP Atul Malhotra told Petromindo.Com on Wednesday on a sideline of McCloskey Asia Pacific Coal Conference in Bali.

The other mine, which is located in Satui, South Kalimantan, is expected to produce 600,000 tonnes next year, similar to this year?s production rate. The mine has reserves of 8 million tonnes.

The company is still looking for mines to be acquired, he said.

The company runs its Indonesian mining portfolio through subsidiary firm Oorja Indo KGS.

He also said that Mercator Lines is targeted to ship 5-6 million tonnes of Indonesian coal to India next year, or similar to this year?s volume.

Coal shipped to Asia market would come from Adaro Indonesia (1.5 million tonnes), Kideco Jaya Agung (1 million tonnes), Bumi Resources (1 million tonnes), trading firm Knowledge Infrastructure Systems Pvt.Ltd (1 million tonnes) and the company?s own mines (1-1.5 million tonnes). (denny)