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Sunday, 16 May 10
INDIKA ENERGY & COAL ASSETS EXPANSION


Insider stories  reported that, PT Indika Energy Tbk (INDY) has three portfolio coal assets, PT Kideco Jaya Agung, coal asset in East Kalimantan, and PT Santan Batubara.

In a public expose material submitted to Indonesia Stock Exchange, Indika owns 46% stakes in Kideco which has coal reserves of 579 million tons with concession area of 50,400 hectares. In Kalimantan Barat's coal asset, Indika controls 90% stakes at 34,200 hectares concession area.

Through PT Petrosea Tbk (PTRO), Indika owns 50% stakes in Santan Batubara with 264 million tons of coal reserves.

Kideco Expansion
At the end of March 2010, Kideco, Indonesia's third largest coal mining company, produced 6.9 million tons of coal with overberden removal of 44.8 million bcm. Kideco's strip ratio reached 6.49.

Kideco has bought equipments such as dumptrucks, excavator, and the others. It has improved crushing plant and loading facilities. Kideco has initiated development of Samarangau pit which has the largest coal reserves at Kideco's concession area.

Samarangau is estimated to have coal resouces of 694 million tons and 348 million tons of coal reserves. 

Santan Production
Santan Batubara is a joint venture between Petrosea, coal mining contractor acquired by Indika mid last year, and PT Harum Energy, a coal mine company owned by Indonesian tycoon Kiki Barki. Petrosea is responsible for coal mining contract and Harum Energy holds Santan's coal marketing.

Santan has commenced a commercial production in March 2009 by mining 1.25 million tons of coal. Santan has signed five contracts of overburden removal with Petrosea. The first productions this year and 2011 are estimated to obtain 2.5 million tons of coal annually.

In mrach 2010, Santan posted US$43.79 million in revenue and recorded 660,456 tons of coal in sales.

Santan has current production capacity of 200,000 tons per month in a bid to provide coals for customers in the local market, India, Korea, and others.  
Source: Insider Stories



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