Singlurus to start coal production Q2 2008

East Kalimantan coal miner PT.Singlurus Pratama said it would start commercial production from the mine in the second quarter of 2008, a few months later than original plan of end of this year.

Director Ludi Prasetyo said the mine will be producing 700,000 tonnes in 2008, ramping up to 3MTPA in 2010-11.

Ludi said the company has secured all necessary permits from the government including environmental assessment impact analysis and clearance from Ministry of Forestry.

He said the company would construct 25-km haul road from the mine to Balikpapan bay, where the loading port would be located. The port would be able to service 10,000 tonnes barges.

Currently the company is assessing three mining contractor candidates, including PT.Pamapersada Nusantara and Bukit Makmur (Buma), he said.

In the first phase, he said, the company will mine coal from Pit 1, which covered an area of 300 hectares, followed by Pit 2 in 2010, which has mineable reserves of 25-30 million tonnes.

Ludi earlier said supply talks had been held with Thai firm Siam Cement, which indicated long-term demand of around 1 MTPA. Domestically, Ludy said Singlurus is eyeing to supply coal to Indonesia Power.

Singlurus is a third generation coal concession holder located in the Kutai Kartanegara and Balikpapan, East Kalimantan. Singlurus is a subsidiary of Thai miner Lanna Resources.(denny)