ThyssenKrupp in long term coal deal with GTB

ThussenKrupp MinEnergy, an energy and mineral trading arm of German conglomerate ThyssenKrupp AG said it was in long term deal to buy coal from East Kalimantan miner PT. Garda Tujuh Benua, which had just commenced production.

ThyssenKrupp MinEnergy regional manager, Indonesia MA Sujono told Petromindo.Com on Thursday that the both companies had signed 8-year deal, in which ThyssenKrupp would offtake up to 2 million tons per annum of GTB?s coal.

Sujono said most of the coal would be sold to ThyssenKrupp's clients in Asia Pacific.

According to Sujono, ThyssenKrupp also provided financing for the development of GTB?s coalmine. GTB?s mine development cost is estimated to be around US$ 8 millions.

?We are keen to look for more coal projects in Indonesia, where we can take part as financier and offtaker,? said Sujono.

GTB?s, which is 100 percent owned by Indonesian businessman had commenced trial production, and would enter commercial production in November. GTB targets to produce 1 million tons of coal in the first year, ramping up to 2 million tons in second year, with planned production capacity of 4 million tons per annum.

GTB operates a 2,000-hectare mining concession located on Bunyu Island, East Kalimantan, believed to contain coal reserves of around 200 million tons. According to Eddy, two local companies, PT Aquanur and PT Kencana Raya, serve as mining sub-contractors in GTB mining site. The company's facility includes a 500-meters belt conveyor and a jetty able to accomodate 8,000-8,500 tons barges. The company?s transshipment facility can handle handymax to panamax size vessels. (alex)