Padang Karunia to start production from C. Kalimantan mine

Padang Karunia Group through its subsidiary PT Padang Anugerah will start coal production from its mine in Muara Teweh regency, Central Kalimantan in April this year, a company official said on Tuesday.

The mine will start production with 500,000 tonnes this year, ramping up to 1-2 million tonnes per annum in two years, Padang Karunia Group Operations Director M. Budiman told Petromindo.Com.

The Muara Teweh mine consists of three separate mining licenses with total concession area of 12,000 hectares. The mine will produce coal with average CV of 6,300 kcal/kg (ADB) with low ash and sulfur, he said.

The initial area to be exploited covers an area of 4,000 hectares with mineable reserves of 10 million tonnes, he said.

Coal from the mine will be hauled along 30-km road to Barito river to the river port which can serve barges with the size of up to 230 feet. Budiman said the Group will spend US$15 million to complete the mine?s haul road, river port and stockpile.

Budiman said the group?s trading arm will sell coal produced from the mine with 50 percent destined for export market. (denny)