South Sumatra coal miner PT Manunggal Multi Energy (MME) has started its coal production since August from its Muara Enim mine with the initial production of 30,000 tons per month, which is expected to gradually ramp up to 75,000 tons per month by the end of this year.
The company’s senior manager, who requested anonymity, told Petromindo.com recently that the company would increase its coal production to 1.5 million tons for full-year next year. For this year, the company is selling its product under spot contract, the official said, but for next year the company would seek term contracts lasting at least under one year.
“ The majority of our coal will be exported to Asian countries and some to domestic market. MME has the calorific value of 5,800 (ADB),” the official said.
In june 2010, MME was sold by publicly-listed construction firm PT Truba Alam Manunggal engineering Tbk to its creditor PT Galaksi Nusantara Kencana as part of a deal to convert Truba’s debt of Rp 162.5 billion (US$18.05 million) into equity in the unit firm. After converting the debt to equity, Galaksi Nusantara holds 87.99 percent of the stakes in MME while Truba’s stake holding was cut 12.01 percent, from 90 percent earlier.
MME has a 5,574 hectares concession that holds coal reserves at an estimanted of 140.8 million tons.
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