Petrosea to commence production from E. Kalimantan coal mine late 2006

JSX-listed mining contractor and engineering firm PT. Petrosea targets to commence coal production from Santan mine in East Kalimantan in the third quarter of 2006.

The company said in a presentation material filed with The JSX Thursday that it was cooperating with coal miner Tanito Harum, whose operating mines is located adjacent to Santan. It said cooperation with Tanito would reduce new infrastructure needs and limit development costs.

The company said total development costs for the mine is estimated at US$16 million. But it did not reveal the mine?s production target volume and the number of mineable reserves.

Petrosea has 50 percent stake in Santan mine.

Elsewhere, the company said it, together with partners, expected to finalize contract to assists global resources company BHP Billiton in study work on their Maruway coking coal project by the end of this year. Maruway coal project is located in Central and East Kalimantan provinces. The project is expected to produce coking coal that would account for 10 percent of current seaborne coking coal market.

The company also said that it was currently negotiating to extend contract scope beyond overburden removal and stripping with East Kalimantan coal miner PT. Gunung Bayan Pratamacoal.

Petrosea is a subsidiary of Australia?s engineering contractor Clough Limited. (alex)