Perdana Karya to spend Rp 100 billion for new coal mines

IDX-listed coal miner and contractor PT Perdana Karya Perkasa Tbk plans to spend up to Rp 100 billion (1US$= Rp 11,150) to develop new coal mines in Marangkayu and Semoi, East Kalimantan next year as part of the company?s expansion into coal mining activities.

The company?s President Director Soeroso said in Jakarta last week that the two mines were expected to begin commercial production in the third quarter of next year with initial production of about 160,000 tons.

He said that about 20 percent of the required funds would be sourced from the company?s internal funds, while the remaining 80 percent were expected to be provided by Komatsu Astra Finance, PT CIMB-Niaga Tbk and PT Bank Central Asia (BCA).

Perdana Karya Perkasa is expected to produce a total of 1.2 million tons of coal next year with the opening of the new mining areas including the company?s producing area in Teluk Dalam concession in Samarinda, East Kalimantan.

?We hope production will increase to 1.4 million and 1.6 million tons in 2010, and 2011,? he said.

The company earlier said that it would continue explorations in five concessions to increase production. The five concessions are Energi Mineral Kertanegara, Gerbang Mineral Kertanegara, Dallah, all in Kutai Kartanegara regency, East Kalimantan; Semoi project in Penajam Paser Utara regency, East Kalimatan; and Perdana Karya Perkasa in South Sumatra. (denny)