United Tractors? coal unit start commercial operation

Central Kalimantan-based coal miner PT. Tuah Turangga Agung (TTA), a coal unit of Indonesia-listed heavy equipment distributor PT United Tractors (UT) Tbk, has started coal commercial production, UT?s corporate secretary told Petromindo last week.

Sara Loebis said that TTA is targeting to produce around 500,000-1 million tons of coal this year. She also said that TTA is still looking for more buyers on spot contract basis.

?For this year, UT will just allocate TTA coal for spot contract. Next year we (UT) will arrange for term of contract,? Sara said.

The first shipment of coal from the mine was headed to a power plant customer in Japan, she said, without unveiling the name of the buyer.

The first shipment was conducted using a Panamax vassel, carrying 10,000 tons of coal from TTA as well as UT?s other coal unit PT Dasa Eka Jasatama, which is based in South Kalimantan, she said.

TTA targets to produce 3 million tons in 2012, which is its installed capacity.

TTA has concession area of around 5,000 hectares in Kapuas Tengah regency with estimated mineable reserves of 40 million tons. The mine produces coal with CV of 6,320 kcal/kg (adb), 5,890 kcal/kg (GAR), sulfuric content of 0.47 percent, ash content of 10.48% and HGl 48. (denny)