MIM start production E. Kalimantan coal mine

East Kalimantan-based coal miner PT Mega Alam Sejahtera, a subsidiary of mining and trading firm PT. Modal Investasi Mineral (MIM), has started production, a company official said.

MAS? Director Derajad Kasmono told Petromindo.com on Friday that the firm would initialy produce 40,000 tons per month and expected to ramp up the output to 100,000 tons per month next year.

MAS coal mine is located in Berau regency. It is believed to have 41 million tons of coal resources and 14 million tons of proven reserve with a calorie content of 5,100 kcal/kg (ADB).

Last year, MIM?s Personal Assistant to President Director Rakhmad Pulukadang told Petromindo.Com that MAS is negotiating with some prospective buyers to offtake the coal. It will also supply to state electricity firm PT Perusahaan Listrik Negara's (PLN) 10,000 MW power project outside Java under long terms contract.

?MIM has signed LoI with PLN to supply a total of 40,000 ton per month to 2x25 MW Manado coal-fired power plant, 2x7 MW Ternate power plant and 2x25 MW Gorontalo power plant,? he said.

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