Santan asks Petrosea to boost new pit's overburden

By Edgar Subroto

East Kalimantan coal miner PT Santan Batubara has signed mining services contract with IDX-listed mining contractor PT Petrosea Tbk to increase volume of overburden removal at its new pit called Uskap.

Petrosea's overburden removal target for Uskap in 2012 was 8.75 million BCM, which will be increased to 18.6 million BCM per year starting 2013 until 2015 and increased to 20.85 million BCM in 2016.

The deal does not mention the volume of coal to be produced from the mine, but the company is hoping to produce around 2.5-3.0 million tons of coal this year, ramping up from around 2 million tons last year, a source in the company said.

Uskap pit has minable reserve of around 7 million tons of coal with calorific value of 6,200-6,000 kcal/kg (ADB) and sulphur below 1.0%.

Santan is a third generation CCoW holder with concession of 25,000 hectares within three regencies, namely Kutai Kartanegara, East Kutai and Bontang in East Kalimantan.

Editing by Er Audy Zandri