KPC reclaims mining areas

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)