R.E.A Holdings plc aiming at coal blending

By Adianto P. Simamora

London-listed, East Kalimantan-based plantation firm R.E.A Holdings Plc said that the company is looking at blending coal mined from its Liburdinding site in Paser Regency, East Kalimantan, with lower sulphur coal to enable the company to sell its products more easily.

?The group is looking at blending Liburdinding coal with low sulphur coal mined from a lower seam or purchased from third parties, although an alternative option is simply to sell the Liburdinding production without blending and to accept a discount for the sulphur content,? the company said in the statement.

R.E.A bought Liburdinding in the second half of 2008.

The company abandoned its original mining plan in 2010 as it found it hard to find market for the coal due to its high sulphur content.

?This will be followed by revision of the existing mine plan with an evaluation of the most economic alternatives for selling coal from this concession, after which it is expected that production will be resumed,? the company said in the statement. ?Production is expected to recommence once an optimized mine plan has been completed,? it said.

The company also is continuing exploration drilling in its Kota Bangun concession in Kutai Kartanegara Regency, East Kalimantan, and is planning works to determine coal resource and potential of an adjacent concession over which the group has secured a period of exclusivity in which it is to complete due diligence.

Editing by David Mustakim