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Coal prospects
The Indonesian coal boom
Over the past five years Indonesia's export coal production has soared from about 55 million tonnes per annum to around 150Mtpa. It is predicted that Indonesian coal production will double by 2017 to at least 400 million tonnes, most of which will be exported.
Kalimantan is already home to approximately 20 large scale coal mines, the biggest of which is Kaltim Prima Coal, owned by Bumi Resources, which produces approximately 35Mtpa of coal from a current resource of 4.5Bt. Notable new discoveries in recent times include the Pakar discovery in East Kutai, which has a substantial JORC-compliant resource of 3.3 billion tonnes of thermal coal. Churchill Mining is also active in the region having acquired a 75% interest in the East Kutai Coal Project where it has already established a sizeable resource.
Current KLG activity
KLG is positioning itself to play a part in Indonesia's still burgeoning coal sector. After investigating a number of near production thermal coal prospects, the company identified Indobara Pratama, a 2,700 ha concession with good logistics, being only 24km from a bargeable river. It is now in the process of negotiating an offtake/investor agreement on behalf of the owners, having completed 58 drill holes over 4,600 meters at the prospect, indicating the potential for a resource of around 270 MT. The coal averages 4,915 kcal/kg, and is suitable for power stations worldwide, including those in India, China and Indonesia.
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