Mercuria to start Kalimantan coal mine production

Singapore-based Mercuria Energy Trading Pte Ltd, a unit of global energy trader Mercuria Energy Group Ltd. is expecting to start coal production at its southeast Kalimantan concession within next nine month.

Mercuria Energy Trading's managing director of metallurgical & thermal coal Ivan Van Niekerk told Petromindo.com last week that the company would produce 2 million tons per annum in the first year.

He did not specify the exact location of the mine and the name of the concession.

In a statement last month, the parent company said that the concession covers an area of 6,000 hectares in southeast Kalimantan, 2500 hectares of which are currently being exploited. First geological due diligence promises exceptional further development in terms of resources available but not yet extracted.

"The acquisition of this existing facility continues the build out of Mercuria's international coal strategy. It will bring investment to the Indonesian and regional markets and further strengthen Mercuria's coal trading capability for its global client base, " Paul Chivers, Mercuria Chief Investment officer said on Nov.16. (denny)