Santan Batubara coal mine to resume production next year
Friday, November 17 2017 - 01:55 AM WIB
Petromindo
IDX-listed coal firm PT Indika Energy Tbk said the Santan Batubara coal mine in East Kalimantan has yet to start production despite the current recovery in the price of the commodity as the company has yet to get a suitable mining contractor.
?We have yet to be able to get a suitable mining contractor,? said Indika Director Azis Armand on Tuesday. He said, however, that production of the mine is expected to be resumed next year. He did not provide further details.
Production at the Santan Batubara coal mine has been suspended for several years following the coal price downturn.
According to Indika website, established in 1998, Santan is a 50/50 joint-venture between Indika Energy?s 69.8 percent owned subsidiary PT Petrosea and IDX-listed coal firm PT Harum Energy Tbk. Santan?s operations involve surface open-cut coal mining at a 24,930 hectare concession area in Kutai Kartanegara Regency and Kutai Timur Regency in East Kalimantan Province. Santan holds coal mining rights until 2028 under a third-generation CCoW. JORC exploration estimated coal resources to reach 222.2 million tons, with reserves of 30.6 million tons. In response to the coal market downturn, Santan produced 1.8 million tons of coal in 2013, a decline of 32.1 percent from 2.6 million tons in 2012.
Editing by Reiner Simanjuntak