Resources Prima expects higher reserves in E. Kalimantan coal concession

By Romel S. Gurky

SGX-listed integrated coal mining firm Resources Prima Group Ltd said Friday that it plans to carry out further exploration at its East Kalimantan coal concession to increase reserves and resources once it has obtained the required ?borrow-use? forestry permit.

The company said that although its Indonesian subsidiary PT Rinjani Kartanegara has been granted a Production Operation IUP (a production operations mining business license) to carry out coal mining operations in the mining concession area covering 1,933 ha in Kutai Kartanegara, East Kalimantan, currently only an area covering approximately 309 ha of the total mining concession area has secured a ?borrow-use? permit from the Indonesian Ministry of Forestry.

As previously announced, the group has commenced the process to secure a ?borrow-use? permit for the remaining 1,624 ha of the total mining concession area (IPPKH2). The process to secure IPPKH2 involves the following four major steps:
a. Recommendation by the Mayor of Kutai Kartanegara;
b. Recommendation by the Governor of East Kalimantan;
c. Recommendation by the Directorate General of Coal under the Ministry of Energy and Mineral Resources; and
d. Issuance of a ?borrow-use? permit by the Ministry of Forestry.

?As of the date of this announcement, PT Rinjani has completed steps (a) to (c) and is proceeding with the final step with an application submitted to the Ministry of Forestry,? Resource Prima said in a statement. Once IPPKH2 is issued, the company shall make the necessary announcement and commence further exploration which could lead to an increase in the group?s coal reserves and resources from the remaining area of its concession.?

The ?borrow-use? permit is required in order for the group to clear forested land to commence mining operations at the mine site.

Editing by Reiner Simanjuntak