Truba to spend $10m for coal mine development

IDX-listed engineering firm PT Truba Alam Manunggal Engineering Tbk (Truba) will spend up to US$10 million to develop the company?s 1,500-ha coal concession area in Muara Enim, South Sumatra, Sindo daily reported on Saturday.

The company?s corporate secretary Gamala W. Katoppo said in Jakarta on Friday that the funds would be used for exploration and infrastructure development.

Truba through its 90 percent subsidiary PT Manunggal Multi Energi (MME) will start coal production at the Muara Enim coal mine in the forth quarter of this year and is expected to begin production with an annual output of one million tons in 2009.

Gamala said an Indian company had signed a contract to buy coal from Truba at US$75 per ton. He did not give further details.

Earlier, Truba was reportedly negotiating with state electricity firm PT Perusahaan Listrik Negara (PLN) to supply 1 million of coal per year to the latter's power plant.

MME has a concession of 5,574 hectares with mineable reserves of 140.8 million tons. The coal has calorific value (CV) of 4,005-6,206 kcal/kg. (*)