Update: Kores produces soft coal in Indonesia

The state-run Korea Resources Corp. (KORES) has successfully produced nearly 100,000 tons of soft coal in Indonesia after about three years of exploration, South Korean news agency yon Hap reported.

KORES said it has already sent samples of the coal to the Korea Electric Power Corp. and several cement companies.

All of the approximately 1 million to 1.5 million tons of coal to be produced annually will be brought into South Korea, the public resources company said.

South Korea's consumption of soft coal is wholly dependent on imports. The country imported 65 million tons of soft coal last year, of which self-developed products accounted for 17 million tons, industry statistics showed.

Initial tests confirmed that about 60 million tons of high-grade bituminous coal is in the mine, which is located in Kutai, East Kalimantan Province, around 60 kilometers north of Samarinda. The reserve could contain as much as 150 million tons of coal, according to KORES.

The mining project is led by South Korea's SEKO International Co., which holds a 95 percent stake, according to KORES. The remainder is held by Indonesian counterparts.

KORES is providing financial and technical assistance to the private firm.(*)