Multi Mamahak to increase coking coal production to 1 MT

East Kalimantan coal miner PT Multi Mamahak Batubara (MMB) will increase its coking coal production to 1 million ton next year from this year?s target of 300,000-350,000 tons.

?We have started initial coal production with a capacity of 30,000 tons and it will increase to 50,000 per month until the end of this year,? MMB?s Director Operation Gordon P. Gormley told Petromindo.Com during Coaltrans Conference in Bali on Wednesday.

PT. MMB is unit of Vancouver-based mining firm SouthGobi Energy Resources Ltd.

SouthGobi has signed coking coal marketing expertise and river barging/vessel loading logistical services agreement for its Mamahak coal project with Glencore International AG.

Under the agreement, Glencore gets exclusive right to market the company's coking coal for a two-year period. This is subject to a review within 12 months.

PT. MMB has four concessions covering 22,968 hectares. The coal will be trucked on a recently completed 34-kilometre haul road to a new barge-loading facility on the Mahakam River. (denny)