TOP expects to start coal production in 2011

East Kalimantan coal mining firm PT.Tekno Orbit Persada (TOP) plans to start production from its mine in the second half of 2011 with initial output of 2 million tonnes per annum.

CEO Naraya Sulisto told Petromindo.Com on Thursday that the company would need to invest US$50 million to bring the mine into production, including building a 120-km haul road from mine to coal port.

Sulisto said final feasibility study for the mine?s development would be completed in May 2009.

Production from the mine, which has JORC-compliant resources of 800 million tonnes could be ramped up to 15MTPA in seven years after production, he said.

Production from the mine would be sold to export market such as India and to domestic market.

He said that the company has signed preliminary deal with Indonesian unit of UAE firm RAK Minerals and Metals Investment to transport its future coal production. According to Sulisto, RAK plans to build a 140-km bulk railway from Muara Wahau in East Kutai to the port area. He, however, said that TOP has yet incorporated RAK?s plan to the company?s feasibility study as the railway project is still at preliminary stage.

Sulisto family has 50 percent stake in TOP. RAK, has stake in TOP through its partnership with another firm that controls another 50 percent stake in the company. (alex)