Reswara?s Aceh coal project to produce 2m tons

By Tri Subhki R

PT Reswara Minergi Hartama, a subsidiary of IDX-listed integrated energy company PT ABM Investama Tbk (ABMM), will produce two million tons of coal when its Aceh?s coal concessions start commercial production in August or September 2014.

The company is discussing with several Indian off takers for coal supply from the Aceh project.

?The Aceh coal mining project is 90% complete and now we are focusing on the port facility development,? newly-appointed ABM Investama?s Director of Finance Adrian Erlangga said. Adrian, formerly director of PT Reswara, added that two million of coal is the initial production capacity and the company is expected to gradually increase the coal production in coming years to maximum capacity of 15 million tons a year.

Reswara also aims to expand its exposure to domestic market, particularly cement industry and state-owned power utility PT PLN (Persero). Reswara currently has coal supply agreement with cement producer PT Lafarge Cement Indonesia in Aceh, according to Adrian.

Reswara owns coal concessions in South Kalimantan operated by PT Tunas Inti Abadi (TIA), and in Nanggroe Aceh Darussalam by PT Mifa Bersaudara (MIFA) and PT Bara Energi Lestari (BEL) under sub-holding company PT Media Djaya Bersama (MDB).

In 2013, TIA produced 4.6 million tons of coal or higher than 3.8 million tons in 2012. TIA is expected to produce 5.5 million to 6 million tons this year. It means that Reswara sets target 7.5 million to 8 million tons of coal production in 2014 from three coal concessions.

TIA has a concession area of 2,074 hectares and estimated to have 52 million tons of coal reserves and 106 million tons of coal resources. Meanwhile, MDB concession areas are estimated to have 169 million tons of coal reserves and 455 million tons of coal resources. Reswara coal concessions have calorific value of 5,100 ? 5,500 kcal/kg (ADB).

Editing by Reiner Simanjuntak