Australian company to start coal mining in Indonesia

Australian company to start coal mining in Indonesia

Australia-based resources company BHP Biliton will start coal mining at the Haju block in Central Kalimantan next year, with initial production expected to be about 700,000 tons per year, a local newspaper reported Saturday.

BHP Biliton said here Friday that the company had spent about 40 million U.S. dollars on developing the Haju mine.

The Haju Block covers a total area of 4,787 hectares, as compared to the overall Lahai concession, which extends to 46,620 hectares, according to the Jakarta Post Daily.

The BHP Biliton, one of the world’s largest diversified resources companies, has more than 100 mine operations in 25 countries. Its interests include coal, copper, manganese, iron ore, uranium, nickel, silver, titanium, diamonds, oil and gas.

Operating in Indonesia since 1998, BHP has spent more than 40 million U.S. dollars on exploration in many parts of the country for coal, minerals and petroleum.

Indonesia’s total coal production almost doubled from 77 million tons in 2000 to 153 million tons last year. The government is launching a campaign to increase the use of coal and natural gas as part of its program to diversify energy use due to diminishing oil reserves.

The country’s coal consumption has continued to increase from year to year. Last year, total consumption of coal reached 41 million tons with most of it being used for power generation. The rest of the country’s coal production was exported last year.

According to estimates, the country’s coal consumption could jump to almost 200 million tons by the year 2025.

Source: Xinhua

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