PKN halts exploration activity in Rangau concession

By Cepi Setiadi

Coal mining company PT Pesona Khatulistiwa Nusantara (PKN) has halted exploration activity in its coal concession in Rangau, Bulungan, North Kalimantan.

President Director Jeffrey Mulyono told Petromindo.com on Friday that the decision to halt the exploration activity was made as part of cost efficiency programs amid the current coal downturn.

"We have already stopped the exploration activity in Rangau concession since couple months ago, so far it was not more than 50 holes," he said, adding that when the situation turns conducive it would resume its exploration activity.

Earlier, the company stated it has budgeted about US$ 1.5 million in capital expenditure for drilling activity at its coal concession in Rangau, which has total area of 4,536 hectares containing low rank coal CV.

Editing by Reiner Simanjuntak