PT Truba to open three coal operations in South Sumatra

PT Tri Usaha Bakti (Truba), a company controlled by Thailand's Banpu Plc, plans to open three mining operations in South Sumatra?s Muara Enim, Musi Banyuasin, and Ogan Komering Ilir regencies covering a total area of 94,690 hectares, the local Palembang Post daily reported Wednesday.

The paper quoted company president Nuryanto as saying that coal production from the operations to reach 1 million tons of coal per year, which would be supplied to power producer PT Indonesia Power.

Speaking during a presentation at the local provincial administration office, Nuryanto said that some US$15 million in investment would be needed to realize the plan.

He said that the company was awaiting for the mining license from the central government.

He did not say when the company would start coal production.

He also did not disclose the exact location of the mining sites, but said that according to its survey, the areas had coal reserves of 500-700 million tons with a combination of low calorie (5,260-6,140 cal/kg) and high calorie coal (6,380-6,880 cal/kg).(*)