Timah?s coal subsidiary may cease production within two years

South Kalimantan coal miner PT Tanjung Alam Jaya (TAJ) may cease production in two years due to reserves depletion, an official at parent company IDX-listed state miner PT Timah Tbk said on Wednesday.

?TAJ may cease production if no new reserves are discovered within the contract area,? Corporate Secretary Abrun Abubakar told Petromindo.Com. He did not say if Timah is planning to conduct further exploration in the area.

Abrun said this year TAJ will produce 850,000 tonnes of coal. Next year TAJ will sell 1 million tonnes, including third party lower rank production which would be used for blending.

He further said that Timah is currently not actively pursuing to acquire new coal mine to replace TAJ. ?Timah is focusing on our core business,? he said.

TAJ operates a 6,000-hectare coal mine in Banjar regency, producing coal with calorific value of approximately 6,500 Kcal/kg. The company sells most of its production to export market.

Timah acquired TAJ in 2003. (denny)