ABSTRACT: Coal Exploration and Development in Southeast Kalimantan, Indonesia
T. Milligan, M. C. Frederick, M. S. W. Lim
The potential for export quality thermal coal in South and East Kalimantan was first recognized during literature research in 1974. In 1978, a rapid reconnaissance established this area as potentially one of the most promising blocks of those being offered by tender to foreign companies at that time. In late 1981, a contract of work was signed between the government coal company, P. N. Batubara and P. T. Arutmin (a joint venture partnership between Utah International Inc. and Arco Coal Company).
Detailed exploration took place over the next three years and initial production began from the Sangsang mine in 1989. Current production rate from this mine (80% BHP-Utah owned P.T. Arutmin/20% P. T. Bakrie & Brothers of Indonesia) is on the order of l million tons per annum. Depending on market acceptability, total production from six mine areas could approach 8 million tons per annum of bituminous coal. A number of subbituminous/lignite deposits in the area are still being evaluated.
AAPG Search and Discovery Article #90097©1990 Fifth Circum-Pacific Energy and Mineral Resources Conference, Honolulu, Hawaii, July 29-August 3, 1990