PKN to start coal mining ops H2 2009
Wednesday, March 18 2009 - 11:55 PM WIB
President Director Jeffrey Mulyono told Petromindo.Com on Wednesday that the mine will initially produce 1 million tonnes per annum, ramping up to 5 MTPA.
The mine will produce a low-rank coal with CV of around 3,400 Kcal/kg with very less than 0.2 percent sulfur less than 2 percent ash, he said. The company wills spend$10 million to bring the mine into production.
Coal from the mine will be transported to the Ansam river port through 18-km haul road, from which coal would be barged to transshipment point in Tarakan.
Jeffrey said the company will also start development of coal upgrading plant using technology called Coal Upgrading Briquetting (CUB) with initial capacity of 250,000 TPA. The plant is expected to be completed in 2011 with 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.
He said PKN?s coal would be sold locally and to export market. PKN, a third generation CCoW holder, is located in Bulungan regency. PKN has mineable reserves of more than 120 million tonnes.
PKN is a unit of PT.Bhakti Energi Persada (BEP), controlled by businessmen TP Rachmat and Benny Subianto.
BEP also controls three mining concessions in Wahau, East Kutai, which coal have similar characteristic with PKN.
Jeffrey said the CUB plant would be built at the East Kutai mines to increase the value of the low rank-coal.
The mines, which are currently in exploration stage and have reserves of 2-3 billion tonnes, comprised of PT.Telen Eco Coal, PT.Persada Multi Bara and PT.Bumi Murau Coal. (alex)