Banpu's RI coal worth $1.63b

Banpu's RI coal worth $1.63b

BANGKOK (DPA): Thailand's Banpu company has confirmed that a recent discovery of coal reserves in Indonesia was worth an estimated US$1.63 billion at today's market price, news reports and company officials said Friday.

Banpu president Chanin Vongkusolkit told the Bangkok Post newspaper that the coal discovered in Jorong mine in South Kalimantan, was of high quality with a calorific (heating) value of 5,500 calories per gram.

Banpu estimated its total commercial reserves at the Jorong mine at 48 million tons, which at today's international market price of $34 per ton would amount to $1.63 billion worth.

Geological reserves at the mine are estimated at more than a 100 million tons, said Phiranan Burannasopha, a Banpu public relations officer.

This year Banpu expects to produce 500,000 tons of coal from its Jorong mine which is operated by PT Jorong Barutama Greston - a firm owned 95 per cent by Banpu and 5 per cent by Indonesian investors.