Thai-based Energy Earth has budgeted Bt3.82 billion to acquire a coal-mining licence in Indonesia to sustain its reserves for 10 years. The mine in East Kalimantan has an estimated 43.05 million tonnes of coal.
Managing director Khajohnpong Khamdee says the company’s wholly-owned subsidiary PT Tri Tunggal Pitriati (TTP) will take over the licence from Jhoswa Mahakam Mineral (JMM). The company plans to start surface mining in the second quarter of 2014 and supplying customers in the fourth quarter.
JMM has submitted an application to upgrade from exploration to production and obtain a principal licence as a requirement for securing a forest borrow-to-use permit. The concession is for five years and can be extended five years at a time until reserves are exhausted.
Energy Earth also has reserves of 3 million tonnes in South Kalimantan, which could be producing later this year, and 40 million tonnes in a Myanmar mine.