Sumber Kurnia to cease open-pit mine operations in 2009

South Kalimantan coal miner PT Sumber Kurnia Buana may cease open pit mining operations in 2009 due to reserves depletion, a company official said.

Manager Mirza Sangaji told Petromindo.com on Tuesday that the company is mulling the possibility to conduct underground mining on its concession, but declined to give any detail.

Sangaji said cumulative production from January until August this year had reached 900,000 tonnes from 1.5 MT production target for the year.

In 2008, production would be kept at constant volume of 1.5 MT and 1 MT in 2009, when the open pit operations would be ceased, he said.

The mine produces coal with CV of above 6,000 Kcal/kg, all sold to trader PT.Bara Multi, he said.

The mine, which is a third generation Coal Contract of Work holder, started production in 2000 with 10,600 hectares concession.(denny)