Oswal to spend $100m to ramp up E. Kalimantan coal mine production

Indian firm Oswal Group will spend US$100 million within the next two years to bring its newly acquired East Kalimantan coal mine to be able to produce 15 million tonnes of coal per annum next year.

PT.Garda Tujuh Buana (GTB) Director Hari Purnomo told Petromindo.Com on Wednesday that the investment would be used to expand the mine?s production facilities.

Hari said GTB would re-start coal mining production from the mine in the third quarter of this year with initial production seen at 2 million tonnes, ramping up to 15 million tonnes per annum in the following years.

Hari said GTB would conduct its own mining operations, adding that currently GTB is in negotiation with several potential buyers. All of the mine?s production would go to export market, he said.

Oswal had bought the entire stake of GTB in December 2007 for US$15 million. GTB operated low-rank coal mine in Bunyu Island but was forced to cease operations early 2007 due to financial problems. (denny)