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IATA Starts Coal Production in South Sumatra

Fri 08 Jul 2022, 13:23 PM



PT MNC Energy Investments Tbk (IATA) through its subsidiary, PT Indonesia Batu Prima Energi (IBPE) has started producing coal in a 15 thousand hectares (ha) concession located in Babat Supat, Musi Banyuasin Regency, South Sumatra. The activity was marked by the First Cut of Mining event which was attended by the Board of Directors of the Company on July 2, 2022.

Director of IBPE, Leader DS Daeli stated, the area of ​​15 thousand hectares is one of the biggest concessions of the Company. 
This concession has not yet reached its full potential as it is still in the process of being explored in most of the mining areas.

"I believe that IBPE will 
significantly increase the Company's production, as well as convince investors that the Company still has the potential to develop with higher production output plans for the coming years," he said in an information disclosure, quoted Friday (8/8).

IATA through IBPE has signed a 5-year contract with the contractor on June 9, 2022 to start production with a target of 500 thousand MT for the first year, the period July-December 2022. In 5 years, the Company targets a total output of 7.5-8 million MT or 1 .5 million MT in the second year and 2 million MT annually for the remainder of the contract (Years 3-5), from Corundum, Beryl and Amethyst Pits.

"IBPE exports around 75% of its coal production to countries such as India, China, Vietnam and Thailand, while the remaining 25% is sold domestically to fulfill Domestic Market Obligations (DMO)," he added. 
The Corundum and Beryl pits are the 2 mines to be mined in the first 2 years. Meanwhile, mining in the Amethyst Pit will begin in the third year, along with new pits that are being and will be prepared, considering that the mining area of ​​15,000 Ha has not been fully explored and there are still many areas that still require the Indonesian Mineral Reserve Committee (KCMI) verification process.

Currently, IBPE has mining infrastructure that is built and prepared adequately, with pit and disposal areas in the mine, hauling road that stretches 2 to 5 Km from pit to port, weigh bridge, and offices for administrative needs. 
In addition to IBPE, the Company's 2 other mines, through PT Bhumi Sriwijaya Perdana Coal (BSPC) and PT Putra Muba Coal (PMC), are already in production, with an output of 2.5 million MT in 2021.

Meanwhile, PT Arthaco Prima Energy (APE) is also targeted to start production this year. 
The company is in the preparation stage, with the construction of a hauling road and port to support the APE production proces



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