Thursday, 08 Sep 2011
Reuters reported that Indonesia largest listed oil firm, Medco Energi will start to produce coal this year aiming for 500,000 tonnes of output by end-2011 to ship to China.
Mr Arie Prabowo Ariotedjo head of its mining unit said "This will be our first coal production project. We are selling it to China through a European trader, adding that its field at Nunukan in Eastern Kalimantan province will start production in three months.”
He said that the firm aims to lift production to 1 million tonnes a year by 2014. Coal output in Indonesia, the world top exporter of thermal coal is estimated to grow at least 10% annually over the next five years with industry groups expecting production to reach 340 million tonnes this year.
The mine at Nunukan is on a 6,500-hectares site and has proven source of 8 million tonnes of coal. Medco is also looking to acquire other coal sources and is ready to inject USD 18 million for the first phase of production.
Medco whose main energy activity centres on oil and gas will join the ranks of Indonesian coal firms such as Asia top thermal coal Bumi Resources which expects to produce 66 million tonnes of coal this year.
(Sourced from Reuters)
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