UCI starts producing low CV at Berau Bara Abadi concession

By Cepi Setiadi

Coal mining company PT United Coal Indonesia (PT UCI) has started producing low CV coal from the concession of its subsidiary PT Berau Bara Abadi in Berau Regency, East Kalimantan.

President Director, Taufik Surya Dharma told Petromindo.com on Saturday that the company expects to have 2.5 million tons output in 2014 from the concession.

"Yesterday we started producing low CV from Berau Bara Abadi concession, for the rest of this year we might be just producing 150,000 tons for 3 months, but next year we will have full capacity of about 200,000 tons per month, and is expected to give additional 2.5 million tons to our total output," he said, adding that the company's total production in 2014 is expected to reach between 5 to 6 million tons.

Meanwhile, UCI has produced about 947,000 tons of coal in the first quarter of 2013. The company is targeting 3.9 million tons production in 2013.

United Coal Indonesia currently has eight concessions spread out in South Sumatra, Central Kalimantan and East Kalimantan, covering a total area of about 24,000 hectares. Four of the eight concessions have been in production stage, while the rest are still at exploration stage. The company's coal calorific value ranges between 3,400-3,800 kcal per kg, and also produces high calorie coal of 7,200.

Editing by Reiner Simanjuntak