MTU to start production in H2 this year: Indika

By Edgar Subroto

IDX-listed PT Indika Energy Tbk has said that it is planning to start coal production from its Central Kalimantan coal mine PT Multi Tambangjaya Utama (MTU) in the second semester of this year.

The company is in the process of getting a new license to allow it to resume production at the coal mining concession. It has been also developing infrastructure and necessary mining logistics, such as hauling road, conveyor, and barge jetty.

Earlier, the company has said that it would begin production in the fourth quarter of 2012 with an initial output of 300,000 tons,

The company?s President Director Arsjad Rasjid said in June last year, when the production reached its full capacity, MTU would produce about 3 million tons of high thermal coal a year in 2013, and 1 million tons of coking coal in 2014.

Indika Energy acquired 85 percent stake of MTU in the first quarter 2012. MTU operates its coal mines of 24,970 hectares under a coal contract of work (PKP2B) of third generation. The mine has reserves of around 40.6 million tons.

Editing by Reiner Simanjuntak