Subhash to start production from E. Kalimantan coal mine April

Kolkata-based infrastructure firm Subhash Projects & Marketing (SPML) will start commercial production of coal from its mine in East Kalimantan in April, chief operating officer Rishabh Sethi said as quoted by Indian media.

The company had begun mining at PT Bina Insan Sukses Mandiri mine in December.

The company plans to initially sell it locally and then export it to Asia. ?We are looking at mining about 50,000?60,000 tonnes a month initially,? Sethi said. SPML is looking at mining 3 million tonnes annually at a later stage.

The mine, which SPML bought with power equipment maker Emco in 2008 for $40 million, has reserves of over 100 million tonnes. SPML holds 55% and Emco the rest in the mine. Sethi said the prices of per tonne of coal were hovering at $25-35 and were heading upwards.

Both the companies would invest about $4-5 million in the mine in 2010-11.

Though there have been no inquires yet from Indian power companies for coal from the mine, Sethi said there was some traction in eastern India. ?At the moment, most of the coal will be sold in Indonesia,? he said.(*)