Mercuria to start Kalimantan coal mine production in Q1 2012

Singapore-based Mercuria Energy Trading Pte Ltd, a unit of global energy trader Mercuria Energy Group Ltd. plans to start coal production on its East Kalimantan coal mine PT Kalimantan Energi Lestari (KEL) in January 2012, the industrial source told Petromindo.Com.

The source said that the mine is expecting to produce 1 million tonnes of coal in the first year and will ramp up to 3 million tonnes of coal per year within the next couple of years.

The company is also planning to buy coal from surrounding mines, it expects to buy around 1 million tonnes per annum, making the total amount the company can trade around 4 million tonnes per year, the source said.

At the present, the company is installing two units of washing plant with combined capacity of 3.5 million tonnes of coal per annum, the sources said. The coal calorific value after washing is around 6,100-6,300 kcal/kg (ADB), the source added.

The distance from the mine to its river port is about 30-km.

The company has appointed PT Thiess Contractors Indonesia as its mining contractor.

Mercuria Energy Group Ltd. acquired KEL in November last year. The purchase of this brown fields operation represents a strategic investment by Mercuria to create an additional growth platform for its coal trading activities, the company said in statement.

The concession covers an area of 6000 hectares, of which 2500 hectares are currently being exploited, it said. (denny)