The Jakarta Post reported that publicly listed coal miner PT Indika Energy is expecting its new subsidiary PT Multi Tambangjaya Utama to start production and raise the company’s output in the Q2 of next year at the latest.

Mr Arsjad Rasjid president director of Indika said that the company was working on regulatory approval and infrastructure development for Multi Tambangjaya to operate at maximum capacity. According to the plan, production will begin in the first quarter next year as anticipated. But we’re pushing to start in the Q4.

Indika, through its subsidiary PT Indika Indonesia Resources, sealed a deal in February to acquire 85% of Multi Tambangjaya from Asia Thai Mining Company Limited for USD 132 million. Indika also took over Multi Tambangjaya’s coal distribution license from International Coal Trading Limited in May.

Multi Tambangjaya now has concessions for 24,970 hectares of bituminous thermal and coking coal in Barito Selatan, Barito Timur and Barito Utara in Central Kalimantan. The company has total reserves of 75.2 million tonnes and coal reserves of 40.6 million tonnes.

Mr Arsjad said that Multi Tambangjaya’s initial production would be between 1 million tonnes and 2 million tonnes if the subsidiary started production next year. The company previously expected around 300,000 metric tons of coal from Multi Tambangjaya in the Q4 of the year.

Source - The Jakarta Post

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