Sekawan Intipratama eyes over 1m tons coal output

By Thomas Robiana Sembiring

IDX-listed PT Sekawan Intipratama Tbk expects its recently acquired coal concession in East Kalimantan to have a total output of more than 1 million tons by the end of this year following maiden production in August.

?We hope production to be above 1 million tons this year,? said Rennier A. R. Latief, President Commissioner of the company.

In a move to diversify into a new line of business, Sekawan, previously engaged in non-woven converter, has recently acquired PT RITS Venture Limited, which owned 66.5 percent stake in coal mining firm PT Indo Wana Bara Mining Coal, which holds a 5,000 ha concession in West Kutai Regency, East Kalimantan.

Indo Wana concession has coal resources estimated at 533.31 million tons, with reserves estimated at 288.1 million tons.

Rennier is optimistic that overseas demand for Indo Wana coal will be strong as the concession has huge reserves, and the coal has low sulfur content of around 0.2 percent. A number of countries have set low sulfur requirement for coal import.

Sekawan is also planning to develop an ethanol plant in West Kutai next year as part of a coal regasification project.

Editing by Reiner Simanjuntak