Delma targeting production of 50,000 tons of coal

Jakarta-PT Delma Mining Corporation coal production target of 50,000 tons in II/2012 semesters and will be exported entirely to India. President Director Bob Kamandanu said Delma Mining Company mines located in Bulungan regency, East Kalimantan is currently still under construction, that is, build infrastructure and mining business.

"The plan is the production of the second semester of this year. There are still constraints of land acquisition. Of the 20,160 acres of our land, it does not mean there can nambang all the land as well as many people," he said .

Delma Mining is one of 12 Work Agreement Coal Mining Concession (PKP2B) which is currently still under construction and not yet in production. Since PKP2B signed on 20 November 1997, meaning that it took almost 15 years for Delma to do the production.

Process leading to the production, Bob continued, consuming a lot of time ranging from a period of exploration during the first 5 years to delay the production of coal products since the company is a low-calorie, ie 2800 Kcal / kg (GAR).

"Once the number of our 100,000 acres of land, 20,160 acres now would stay after the process of exploration and so on. After [coal] are known low-calorie, it can not be marketed," he said.
 Given there is no market for coal when it's low calorie, Delma was delaying its production to achieve economies of effort based on a feasibility study has been done.

"Eventually we waited. Only now are low calorie coal began to be visited. If for instance the quality of coal Delma like Berau Coal, for example, would be long we produce," he said. If the first Delma force for production, Bob continued, even then not sold on the market and the company can lose money. Bob said that while the coal company is still exported, but if later there is a demand from the domestic Delma definitely will prioritize to sell to the domestic. "If there is domestic needs, we must prioritize the domestic," he said. In this 2012 Delma budgeted capital expenditure or capex (capital expenditure) amounted to U.S. $ 30 million more was allocated for infrastructure, such as jeti facilities, ships, until the conveyance of coal (conveyor).

In addition, the long-term plans of the company, in addition to increasing the production of Delma also plans to increase the added value as do the gasification of coal and coal mine mouth power plant building. "We're definitely going to do value-added. But mine mouth power plant may not be this year, plans 2013 and its capacity is not great. We also plan to open the area around the mining industry," explains Bob.

Based on data from the Ministry of Energy and Mineral Resources as of October 2011, as a whole since PKP2B generation I (1981-1990), generation II (1994) up to generation III (1997-2000) has been found a total of 141 PKP2B. Of that amount, as much as 65 PKP2B been terminated and now lives PKP2B remaining 76 are still active.

76 of PKP2B , 50 PKP2B them already in production, while 12 PKP2B still under construction, 9 PKP2B still the feasibility study stage and 5 PKP2B still exploratory stage.