Arutmin To Provide 10 MT Of Coal For 10,000 MW Project

PT Arutmin Indonesia has recently been increasing its production capacity, and preparing for 3 new coal ports. Faisal Firdaus, CEO of Arutmin, said that the efforts were to support the coal supplies for the Phase I of 10,000 MW Electricity Generation Program.

"We will increase production up to 30 MT per year, and one third of the amount is allocated to supply coal for the 10,000 MW project. For the shipping, we are building 3 new coal ports. One of the ports is now ready," Firdaus told TAMBANG Magazine, on 19 August 2009.

Under the license of Coal Mining Contract of Work Generation I (1981), PT Arutmin Indonesia has conducted coal exploitation on 5 different working areas in South Kalimantan, i.e. Senakin and North Pulau Laut Coal Terminal (Kota Baru), Satui and Batu Licin (Tanah Bumbu), and also Asam-Asam (Tanah Laut).

Additionally, Arutmin has been working on expansion programs for 3 new coal ports. Two of the ports are located in Kimpat (Tanah Laut) and Satui (Tanah Bumbu). The other one, located in Asam-Asam (Tanah Laut), has been completed and tested for trials. The 3 new coal ports were built to anticipate the production capacity increase.

Firdaus explained that currently the domestic market would not be able to tap the additional production from Arutmin, because the Phase I of 10,000 MW Project has been going in a very slow pace. "But, in a year or two, we have the commitment for that," he concluded.