Sinarmas? unit to triple Jambi coal production next year

Jambi coal miner PT Kuansing Inti Makmur (KIM), a coal unit of Indonesia-listed firm PT Dian Swastatika Sentosa (DSS) is planning to boost coal production from this year?s target of 1.5 million tons to 4-5 million tons next year, the company?s senior officer told Petromindo.Com.

Asistant vice president Sandy Susanto said that the company will exploit more pits next year. ?We are offering our current contractors to mine the pits. The company has two local contractors at present,? he said.

The company has also secured commitment from buyers in China, India and local market to buy a combined 2 million tons for next year, meaning that another 2-3 million tons is still open for any potential buyers, he said.

Next month, the company will ship 16,000 tons of coal as a trial shipment to end-user in Bangladesh.

Currently, the company is delivering its coal by trucks over 250-km distance to Teluk Bayur port in West Sumatra. ?The company is studying to move its loading port to Talang Duku in Jambi to cut transportation cost,? he added.

In May 2010, KIM acquired 99 percent shares of coal miner PT Karya Cemerlang Persada (KCP) for Rp 12 billion. KCP has a coal production license.

KIM has a coal mine in Bungo Regency

DSS, which is a subsidiary of Sinarmas Group, has five coal units, including PT Borneo Indobara (production stage) in South Kalimantan; PT Wahana Alam lestari (WAL) (production stage) in Tebo regency, Jambi; PT Nusantara Indah Lestari (NIL) (exploration stage)in Indragiri Hulu regency, Riau; and PT Manggala Alam Lestari (MAL) (exploration stage)in Musi Banyuasin regency, S. Sumatra.

DSS also operates four power plants with total capacity of 300 megawatt. The electricity is supplied to Sinarmas?s pulp and paper subsidiary Indah Kiat. (denny)