Resources Alam to resume coal production in Loa Haur next year

IDX-listed coal mining company PT Resources Alam Indonesia Tbk hopes to resume production at its Loa Haur mine in East Kalimantan next year.

?The company is trying to conclude the process (to obtain the) borrow and use of forestry area and special port (permits) in 2018 so that coal production can be resumed from PT Loa Haur mine,? Resource Alam said in a recent statement referring to its subsidiary.

The company suspended production activity at Loa Haur concession a few years ago due to the weak coal price environment. It said in May that coal production was set to resume in the fourth quarter of this year.

The 5,000-ha Loa Haur concession in Central Kalimantan Province has proven coal reserves estimated at around 12 million tons, with CV of 4,650-6,191 kcal/kg (GAR), according to the company. Production at the mine was suspended a couple of years ago due to weak coal price.

Resources Alam currently relies coal production from another subsidiary PT Insani Bara Perkasa, which operates mines in East Kalimantan, producing coal with CV of 4,500-5,000 kcal/kg.

Editing by Reiner Simanjuntak