MSJ to produce 2 million tons of coal in 2005

East Kalimantan-based coal miner PT Mahakam Sumber Jaya (MSJ) said Tuesday it had scheduled to commence commercial coal production of 2 million tons with calorific value of 6,000 kcal/kg in 2005.

“Coal production will double to 4 million tons in the second year of production,” SMJ director Hiu Kirtiyadi told Petromindo.Com on the sidelines of CoalTrans conference in Bali.

Hiu also said MSJ is 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.

MSJ operates a 20,380 ha concession areas located in Samarinda mayoralty and Kutai Kartanegara regency. Total reserves in the mining area is estimated at around 345.25 million tons, with mineable reserves at 65.57 million tons.

According to Hiu, MSJ will transport the coal products using 8,000-ton barges through Mahakam river to transshipment point at offshore Samarinda. (alex)