MME starts S. Sumatra coal production

South Sumatra coal miner PT Manunggal Multi Energi (MME) has started its coal production since August from its Muara Enim mine with initial production of 30,000 tons per month and expected to gradually ramp up to 75,000 tons per month by the end of this year.

The company?s senior manager, Rodliyah Muzdalifah, told Petromindo.Com on Tuesday that next year the company will increase its coal production to 1.5 million tons for full-year.

For this year, the company is selling its product under spot contract, she said, but for next year the company would seek term contracts lasting at least under 1-year.

?The majority our coal will be exported to Asian countries and some to domestic. MME has calorific value of 5,800 (ADB),? she said.

In June 2010, MME was sold by publicly-listed construction firm PT Truba Alam Manunggal Engineering to its creditor PT Galaksi Nusantara Kencana as part of a deal to convert Truba?s debt worth of Rp 162.5 billion into equity in the unit firm.

After converting debt to equity, Galaksi Nusantara holds 87.99 percent of the stakes in MME while Truba?s stake holding was cut to12.01 percent, from 90 percent earlier.

MME has concession of 5,574 hectares with reserves estimated at140.8 million tons. (denny)