PKN to start coal production Sept

East Kalimantan coal miner PT Pesona Khatulistiwa Nusantara (PKN) will start commissioning of its mine in the first week of next month, parent company PT Bhakti Energi Persada said on Friday.

President Director Jeffrey Muljono told Petromindo.Com that the commissioning would be one month later than originally scheduled.

Output for the first month will be 30,000 tonnes, ramping up to 50,000 tonnes in the second month with ultimate production target of 80,000 tonnes per month.

Jeffrey said some of the 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 panamexes of coal this year to India,? he said, adding that Maheswari has signaled interest to extend the contract into long-term one.

He did not give detail about pricing.

Some of PKN?s coal, which has CV of 3,400kcal/kg, will be blended with coal production from its neighboring mines, he said.

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.(bernard)