KPC reclaims mining areas

JAKARTA (JP): The country's largest coal mining company, PT Kaltim Prima Coal (KPC), has reclaimed 850 hectares of its former mining areas in Sangatta, East Kalimantan, in its effort to reforest the area.

Company public relations executive Ali Nurdin said in Sangatta on Monday that KPC had planted 2,000 tropical trees of several species originating from Kalimantan and outside.

The company spent US$14 per hectare for the reclamation program, he was quoted by Antara news agency as saying.

He said KPC would open new mining fields covering 153 hectares next year, but would reclaim 207 hectares of its former mining areas.

"Since 1997, we have adopted the policy of reclaiming larger areas than opening new mining areas," Ali said.

He said the company seeding center provided 500,000 seeds of 95 plant species, including 50 species indigenous to Kalimantan.

KPC, which is owned by British Petroleum and Rio Tinto, plans to produce 15 million tons of coal this year.

Company operational general manager Howard Russel said the company would stick to the initial production plan although coal price had dropped to US$20 per ton this year from $34 per ton last year.

Russel said the company's coal reserve in Sangatta has dropped to 474 million tons after seven years of production, but the company is currently exploring for new coal reserves in Bengalon and Melawan areas, near Sangatta.

The Bengalon area is estimated to have potential coal deposit of 159 million tons. (jsk)