PT Pendopo Energi Batubara (PEB) was established in 1995 and in 1997 entered the 3rd Generation Coal Contract of Work (CCoW) with the Government of Indonesia. The CCoW covers 17,840 hectares in Pendopo, Muara Enim, South Sumatra.
PEB started exploration in 1997, a feasibility study was approved in 2006, a JORC-compliant report was issued by Runge in 2008 and is currently being updated, and operation/production permits were issued in 2009 for 30 years and can be extended for two periods of 10 years.
PEB’s coal resources and reserves are categorized as lignite with low calorific value and high moisture content, but with low sulphur, low ash and low nitrogen contents.
Indonesia’s coal resources are estimated at 105.19 billion tonnes and reserves are 21.13 billion tonnes. Around 50% of the deposits are in Sumatra which has resources of 52.44 billion tonnes and reserves of 11.23 billion tonnes.
PEB has large coal reserves comparable to major coal mine companies and is the lowest cost coal producer in Indonesia. According to the updated report being prepared by Runge, PEB’s resources are estimated at 2.3 billion tonnes and its reserves at 1.3 billion tonnes, up from the previous totals of 1.95 billion tonnes and 687 million tonnes respectively.