MSJ to produce 1.5 million tons of coal in 2005

Coal mining company PT Mahakam Sumber Jaya (SMJ) has targeted to produce around 1.50 million tons of coal from its concession in East Kalimantan province in 2005, lower than planned earlier of around two million tons.

MSJ operates a 20,380-ha concession areas located in Samarinda mayoralty and Kutai Kartanegara regency. MSJ divides the concession into five blocks namely Block A, B, C, D, and E. Total reserves in the mining area is estimated at around 345.25 million tons, with mineable reserves at 65.57 million tons.

Company engineer Tory Asyantoro told Petromindo.Com over the weekend that SMJ next year would produce around 900,000 tons of coal from the Block A, which will be carry out by PT Leighton Indonesia, while the remainder will be sourced from the Block B. Operation at the Block B will be conduct by PT Cipta Kridatama.

Tory also said as of the end of November, SMJ produced around 170,000 tons of coal for trial.

According to Tory, coal produced will be shipped to export markets such as Japan, Thailand, India, and Taiwan. The coal marketing will be carry out by parent company PT Tanito Harum.

Earlier, company director Hiu Kirtiyadi said MSJ was in talks with Malaysian-based electricity firm Tenaga National Berhad to supply around 500,000 tons of coal a year to the latter's power plant.

According to a government sources, MSJ has planned to produce two million coal in 2006, 2.7 million tons in 2007, four million tons in 2008, and five million tons in 2009.

The source also said, production from the Block D will be commenced in 2007, while the Block E would start to produce coal in 2009. (godang)