PKN to sell first coal to Hasil Bumi

East Kalimantan coal mining firm PT. Pesona Khatulistiwa Nusantara (PKN) will sell its first coal to coal trading firm PT. Hasil Bumi Kalimantan when it starts commercial production in August this year.

The miner will initially produce 1 million tons per annum and the output will be bought by PT Hasil Bumi Kalimantan, a unit of Baramulti Group, the company?s official told Petromindo.Com last week.

?The sale of coal to Hasil Bumi is not (based on) a long-term contract,? the official added, without giving further details.

PKN is a third generation CCoW holder with its concession located in Bulungan regency. PKN has mineable reserves of more than 120 million tons with a low-ranked quality of around 3,400 Kcal/kg, sulfur content of less than 0.2 percent and ash content of less than 2 percent.

PKN is a unit of PT. Bhakti Energi Persada (BEP), controlled by businessmen TP Rachmat and Benny Subianto.

PKN's President Director Jeffrey Mulyono told Petromindo.Com on March 19, 2009 that the company will also develope a coal upgrading plant equipped with the so-called Coal Upgrading Briquetting (CUB)technology with initial capacity of 250,000 TPA. The development of the plant is expected to be completed in 2011 with an investment of $8-10 million.

?We?ll build another unit of CUB, possibly with bigger capacity if the first unit is a success,? he said. (denny)