PD Baramarta secures coal exploitation license in South Kalimantan

PD Baramarta, a company belonging to Banjar district administration, has secured a license from the Directorate General of General Mining to exploit coal in a 752 hectare area in Banjar district, South Kalimantan.

Baramarta's director for general affairs, A Zacky Hafizi, said the exploitation area accorded to the company constituted only about 10 percent of all the concession areas mentioned the coal mining license (PKP2B).

According to the Director General of General Mining Decree No. 798.K/20.01/DJP/2000 dated Dec. 22, 2000, the concession areas accorded to Baramarta are 7,496 hectares.

But Baramarta could only use 752 hectares out of those concession areas as its production area, that could be exploited from Dec. 14, 2000 through Dec. 13, 2030. The company could explore for coal in its remaining concession areas.

Zacky said that Baramarta recruited two working partners, Adyaksa and Puskopad, to exploit for coal in its mining concession areas. Because of inadequate facilities, Baramarta limited its coal production to 50,000 tons per month.

To increase its production, the company planned to build its own land road from its mining sites to Cintapuri, and then build a 30-kilometer canal from Cintapuri to Barito river. The company needed Rp 40 billion to build those road and canal. It planned to borrow the fund from the Asian Development Bank or the Wordl Bank. But if it failed to secured funds from both banks, it would offer it to investors. (*)