MIM says coal production to start early 2008

Mining and trading firm PT. Modal Investasi Mineral (MIM) said on Monday that coal production from its East Kalimantan coal mining subsidiary PT Damanka Prima would start in the first quarter of next year with output at the first year targeted to reach 500,000 tonnes.

The company?s mine is located in Sangatta, East Kutai regency.

MIM Director Hari Purnomo told Petromindo.Com that it was currently trying to secure heavy equipments to support the mines operations. ?Heavy equipment market is currently very tight on soaring demand,? he said.

Hari said Damanka has also held talks with miners nearby such as KPC and Perkasa Inakakerta to develop infrastructure such as jetty to load coal.

The company will also develop crushing plant with capacity of 350 tonnes per hour and stockpile with capacity of 40-60,000 tonnes, he said.

Talks had been held with several national traders to offtake the coal, he said.

Damanka will produce coal with CV of 5,800-6,000 Kcal/kg with mineable reserves of 25 million tonnes, he said.

Meanwhile, Hari also said that production start of its other coal mining subsidiary PT Mega Alam Sejahtera (MAS) in Berau, East Kalimantan was delayed to Q1 2008 due to lack of heavy equipments available in the market.

MAS is projected produce 40,000 tonnes of coal per month.

MIM is a subsidiary of Indonesian stock exchange-listed firm ATPK Resources.(denny)