Titan ramps up coal production

Coal mining group PT Titan Mining Energy expects production from its two mines in Sumatra at between 1.35-1.6 million tonnes this year and would ramp up to up to 3.5MT next year.

Chief of Mining Operations Roza P Putra told Petromindo.Com on Monday that the fisrt mine which is located in North Bengkulu regency, Bengkulu province, will produce 750,000-1MT of coal this year with output expected to increase to 2-2.5MT next year.

Roza said the Bengkulu mine, which produces coal with CV of 5,600-5,700 kcal/kg (GAR), has been fully contracted for 2010. The Company sells 50 percent of its Bengkulu coal to export market such as India and China.

Another mine in Tebo regency, Jambi province, will produce 600,000 tonnes this year, ramping up to 1 MT in 2011. The mine produces low CV coal and are fully dedicated to domestic market.

The Company started production from the two mines last year.

Apart from Sumatra mines, the Company also has one mine in South Kalimantan and another in Berau, East Kalimantan which will start producing late this year.

The Company has won 20-year 3.5 MTPA coal supply contract to PLN?s power plants in Suralaya, Labuan, Rembang, all in Java and Parit Baru, West Kalimantan starting 2010. (denny)