Sekawan delays coal production schedule

Petromindo|Khalsa

IDX-listed PT Sekawan Intipratama Tbk said that its East Kalimantan coal mining subsidiary PT Indowana Bara Mining Coal (IWBMC) will not be able to meet the initial schedule of starting coal production in October of this year.

Sekawan President Director Christian Victor Ponto was quoted by news portal kontan.co.id as saying Friday that this was because IWBMC has yet to complete selection of the mining contractor, which was supposed to have been completed in August.

He said that the company is currently still trying to select the best mining contractor. ?We want (contractor) which can provide the most efficient cost, and if possible can be paid later after production starts,? he said.

Sekawan owns 90 percent of IWBMC, which operates a 5,000-ha coal concession in West Kutai Regency, East Kalimantan, with coal resources estimated at 533.31 million tons, and reserves estimated at 288.1 million tons.

IWBMC said in August of last year it would run production at a rate of about 20,000-30,000 tons per month initially. (*)