PKN starts coal production

East Kalimantan Coal mining group PT Bhakti Energi Persada (BEP) said its unit PT Pesona Khatulistiwa Nusantara (PKN) has started commercial coal production this month.

President Director Jeffrey Muljono told Petromindo.Com on Friday that the company will send 5,000 tonnes of PKN coal as blending to other coal producer early next month and will export 50,000 tonnes to Indian power plant in the third week of October.

Jeffrey said earlier that some of PKN coal would be sold to Indian firm Maheswari Group through London Commodity Brokers with whom the company has secured 6-month supply contract. ?PKN will ship 2 panamaxes of coal this year to India,? he said, adding that Maheswari has signaled interest to extend the contract into long-term one.

PKN produces coal with CV of 3,400kcal/kg.

PKN, a third generation CCoW holder, is located in Bulungan regency. PKN has mineable reserves of more than 120 million tonnes.

Meanwhile, Jeffrey said its other unit Persada Multi Bara (PMB) has completed feasibility study and would likely start construction in April 2010 pending completion of environmental impact assessment.

BEP has four low-rank coal mines at pre-production stages in East Kalimantan, namely: PKN, PMB, Bumi Murau Coal, dan Telen Eco Coal with total reserves of 5.7 billion tonnes.

Jeffrey said the Group will float its shares at Indonesian Stock Exchange in March next year. (bernard)