TOP to start exploit coal from Kalimantan 2010

PT Tekno Orbit Persada (TOP), a coal mining subsidiary of local firm Satmarindo Group will invest US$300 million to bring its East Kalimantan coal mining concession into production in 2010.

Company?s Director Ramli Firmanco told Petromindo.Com in an interview last week that the investment would be used to develop the mine, including construction of 120-km rail conveyor and river port that could serve 8,000-10,000 tonnes barges. According to him, the mine is expected to produce 10-15 million tonnes per annum.

Firman said currently the mine, which is located in Muara Wahau in East Kutai regency, is in completion of detailed exploration stage, with feasibility study expected to be completed in 2009.

TOP will be working with an undisclosed Chinese firm to build the infrastructure, he added.

TOP has concession of 12,000 hectares of area under the mining licenses (KP) issued by local government with JORC-compliant coal reserves of 793 million tonnes in the northern part and an estimated reserves of 1 billion tonnes in the South part, he said. Most coal from the concession have calorific value of 5,200-5,300 Kcal/kg. (denny)