The first contract for 8000 tonnes of thermal coal from Jatenergy’s Jongkang mines in East Kalimantan has been sold to a Singaporean buyer.
Jatenergy has an on-site stockpile of readily accessible capped coal of about 15,000 tonnes. The company’s Jongkang I and Jongkang II mines are about 5km from the stockpile, crushing and conveyor loading facility on the Mahakam River which is 25km from the coal shipping hub of Samarinda.
Jatenergy is a major player in the renewable biofuels sector, producing high quality crude jatropha oil for the global airline industry and has recently diversified into coal mining. Its main focus is to achieve 1000 tonnes of oil sales sourced from its jatropha plantation in central Java. The company believes renewable energy will become increasingly mainstream during the next decade, but that conventional energy sources will continue to play an important role.
Jatenergy has contributed about US$1 million towards the working capital costs of both mines, in return for 30% of the mining margin and the marketing rights to 100% of the production.
Production of coal from the mines began just months after their acquisition in September 2011. The company has also secured a production licence for a third mine, the Atan Bara project in East Kalimantan. It is a logistically simple, fast-to-production, thermal coal project which Jatenergy expects to start production by October 2012.
Atan Bara covers more than 200 hectares and has an exploration target of between 500,000 and 700,000 tonnes of thermal coal. It is about 30km from the major coal hub of Balikpapan.
The Atan Bara and Jongkang projects are expected to provide the company with the cash flows to develop the much larger Katingan coal project in Central Kalimantan that has an exploration target of between 36 million and 43 million tonnes.