Kideco plans to produce 31MT in 2011 and 40MT in 2015

East Kalimantan coal minner PT Kideco Jaya Agung is planning  to produce 31 million tons (MT) of coal next year, up 2 million tons compared to this year’s target of 29 million tons, the company director has said.

kideco

kideco

Kideco managing director CH Richard Lee told Petromindo.Com that it was on track to produce 29 million tons of coal this year, up from 24.7 million tons last year despite the recent closure of its mine by the government and unfavorable weather. 

“For next year, the company is set to produce around 31 million tons,” he said. During January-September period, the company’s coal production reached 21.24 million tons, with the sales volume of 21.77 million tons. Twenty five percent of the coal produced this year is allocated for domestic market and the rest will be exported. 

This year, Kideco would ship 5 million tons and 3 million tons of coal to India and China, respectively, slightly, higher compared to last year’s export, he said, adding that aside from both countries , Kideco also shipped its coal to Taiwan, South Korea, Japan and some European countries.

He also said that the company will gradually increase its output to the ultimate target of 40 million tons per annum (MTPA) starting 2015. 

Kideco is the country’s third largest miner with 50,400-hectare concession. Indonesia-listed energy firm PT Indika Energy Tbk has a 46 percent stake in Kideco, while South Korean firm Samtan Co. Ltd holds 49 percent stake and local company PT Muji Inti Utama has the remaining 5 percent.

In a May presentation, Indika said that to reach the 40 MTPA coal production target, Kideco would optimize the development of its largest coal pit called Samarangau, which has the resources of 694 million tons (based on JORC report in June 2009) and minerable reserves of 348 million tons. The coal produced at Samarangau has the calorific value (CV) of 4,275 Kcal/kg. Kideco will also build a new haul road and bridge connecting another pit called Susubang with its crushing plant. 

Susubang is a smaller mine with 14 million tons of mineable reserves and 21 million tons of total resources. The mine produces coal with 5,277 Kcal/kg CV. To support the expansion, Kideco will increase investment in heavy equipment such as dumptrucks and excavators, and increase the capacity of loading facility at Tanah Merah coal terminal and crushing plant. 

Source : Asia Coal Magazine