S. Sumatra?s Baramutiara Prima to start coal production in 2006

Coal mining company PT Baramutiara Prima plans to commence coal production from its concession in Musi Banyuasin regency, South Sumatra Province in the end of 2006.

?We hope the feasibility study on the coal mining project will be completed by end of August this year,? Baramutiara director Agus Wuryanto said Monday, adding that the company targeted to produce around 500,000 tons of coal in the first year of production.

Agus said Baramutiara would cooperate with shipping companies, Samudera Indonesia group and/or PT Arpeni, to transport the products to Singapore or Malaysia.

Baramutiara?s coal mining concession is located in Sungai Lilin district. According to Agus, the four block of the concession contains approximately 50 million tons of coal mineable reserves each with calorific value of around 5,500 kcal/kg.

Based on the company?s transportation study, the firm has concluded that the best way to transport its coal is via road and rivers to Tanjung Api-Api or the Bangka island on the Malacca Straits, from where vessels will take the coal to buyers. (dino)