Resource Alam obtains key permits for C. Kalimantan concession

IDX-listed coal miner PT Resource Alam Indonesia Tbk has obtained the necessary IUP production permit and the borrow and use forestry permit to start production at its 5,000-ha Loa Haur coal concession in Central Kalimantan, Kontan reported on Wednesday.

?Hopefully, next year the Loa Haur concession can contribute production and revenue to the company,? Resource Alam Corporate Secretary Lenny S.C. told Kontan.

The company acquired a 60 percent controlling stake at PT Loa Haur in May of 2012. The coal concession is designed to have a production capacity of 1.5-2 million tons per year.

Located in Murung Raya Regency, the concession has coal reserves with calorific value of 5,800-6,100 kcal per kg.

Aside form the Loa Haur concession, the firm also has two other concessions, namely Insani Bara Perkasa (IBP) and Kaltim Mineral concessions, both located in East Kalimantan. The three concessions are estimated to hold combined reserves of 92 million tons.

Thus far, only IBP has come into production, while Kaltim Mineral is still in the exploration stage.

Lenny said that the company is currently at the stage of developing infrastructure facilities at the 10,000-ha Kaltim Mineral concession. The company acquired 75 percent stake in the concession in 2012.

Elsewhere, Lenny said that the company?s coal sales volume in the first quarter of this year declined by 17.3 percent to 957,959 tons compared to the same period of last year, while average selling price fell to $41.68 per ton from $41.92 in the last year?s same quarter. This resulted in lower first quarter revenue of $40.05 million from $54.64 million in the same period of last year. (*)