PT MGM to begin coal production in January

PT Marunda Graha Mineral (MGM, a new coal mining company located in Murung Raya, Central Kalimantan, will begin its commercial production in January, next year, Banjarmasin Post reported on Saturday.

Murung Raya regent Willy M. Yoseph said that the inauguration ceremony for the company?s maiden production activities would be held at the company?s mining site with the presence of Central Kalimantan Governor Asmawi.

PT MGM, the first company to explore coal in the regency, has a concession area of about 99,792 hectares mostly located at the Laung Tuhup district.

Several other companies including an affiliate of BHP PT Kalteng Coal, with a concession area of 91,900 hectares in Laung Tuhup district, PT Ratah Coal with a concession area of 99,940 hectares also in Laung Tuhup district, PT Joloi Coal with a concession area of 192,340 hectares in Sumber Barito district, PT Maruwei Coal with a concession area of 99,600 hectares in Sumber Barito district and PT Sumber Barito Coal with a concession area of 100,300 hectares also in Sumber Barito district are expected to begin their exploration in 2005.

Meanwhile, coal companies PT Pari Coal, PT Asmin Bara Bronang, PT Asmin Koalindo Tuhup and PT Lahei Coal are now conducting feasibility study on their concession sites.

MGM is 64% owned by Indonesian businessman Saiman Ernawan, while the remaining shares are held by Itochu Coal Resources Australia Pty. Ltd. (20%), and another local businessman Eddy Winata (16%).

The MGM coal product specification is as follows: Calorific Value (7,400 Kcal/Kg); Total Moisture (7%-8%); Inherent Moisture (3%-5%); Ash Content (5%-6%); Volatile Matter (38%-40%); Fixed Carbon (52%); Total Sulfur (0.4%-0.6%); HGI (45); CSN/FSI (2-4); Maximum Fluidity (200).(*)