OSO sustains coal production, eyes on granite

By Er Audy Zandri

Indonesian miner OSO Group, the holding company of PT Citra Putra Mandiri, recently stated to produce around 30,000 tons of coal per month or around 360,000 tons per annum.

"Due to the drop of coal prices, we have decided to limit our production. In addition, the CV of our coal is quite low, which is affected the most by the coal price drop," group CEO Mariano Asril said to Petromindo.com during the sidelines of this year's Asia Pacific Mining Conference Indonesia 2012.

With a total of 9 concessions, 6 located in Sumatra, Jambi area and 3 in East Kalimantan, OSO has two mines starting operation since February last year with coal CV ranging between 5,100kcal/kg and 5,500kcal/kg (ADB). Mariano didn't mention the mines reserve.

Lack of infrastructure, he said, was also a obstacle.

It sold most of its coal to China and India on long term contracts, with prices reviewed every month.

"Granite, on the other hand, is sexier these days with coal prices going down," he said, adding that the group expect to produce 6 million tons of Granite this year, ramping up to 18 million tons next year.

The company also plans to allocate up to US$ 250 million worth of capital expenditure for the next five years to finance its infrastructure development program.

Editing by David Mustakim