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South Kalimantan’s potential

The province is already one of the main contributors to Indonesian coal exports, but the local mining and energy office see this role expanding.

A look at the development potential of South Kalimantan

South Kalimantan is one of the main contributors to Indonesia’s national coal production and this is set to increase as officials push the potential of the province

Currently around one-third of South Kalimantan is being mined. The province borders Central Kalimantan to the west and East Kalimantan to the north. The Java Sea is located to the south of the province.

“There are still many opportunities in South Kalimantan even though the region is quite dense,” said Heryozani Dharma of the Provincial Mining and Energy Office at the annual Coaltrans Asia conference.

Coal resources in South Kalimantan are currently believed to be 20.6 billion metric tons with mineable reserves of 3.6 billion metric tons, according to Dharma. Pat Hanna, executive director of Cokal also speaking at the conference gave the same estimate.

The coal quality in South Kalimantan is quite variable, with low calorie coal in the Warukin Formation and high calorie contained in the Tanjung Formation.

“Up to now we have placed great efforts and have cooperation with investors in South Kalimantan,” said Dharma at the conference in Nusa Dua, Bali.

About 7% of South Kalimantan is coal-licensing agreements. There are 19 licences with 16 existing companies, but there are three production licenses that have not finished the exploration stage.

Since the government announced its clean and clear evaluation of coal producers in Indonesia, only half of the 600 licenses in South Kalimantan have passed. Dharma pleaded for the government to re-open the clean and clear evaluation to boost mining in the area.

“Without the clean and clear evaluation, the production of the country suffers great losses,” said Dharma at Coaltrans Asia.

The Minister for Energy and Natural Resources Jero Wacik said in his opening remarks at Coaltrans Asia that by 2025, Indonesia’s energy mix would increase coal usage from 25% to 33%. It is thought South Kalimantan will be one of the key players in meeting this increase.

The Provincial Mining and Energy Office is aware that while activities can be prosperous, the South Kalimantan port hampers development. Dharma said that that fees at the port had doubled in recent years.

“Coal is limited and an un-renewable resource, so exploitation should be done wisely. So much so that the principle of good mining practice is the main foundation in the management of South Kalimantan,” said Dharma at the conference.

With a current production capacity, the estimated life of the coalmines in South Kalimantan is 30 years.

It appears that the local Mining and Energy Office are more than willing to cooperate with foreign investors over future production. It is hoped this cooperation will aid investors when exploiting South Kalimantan’s resources.

This content is provided by Coaltrans Conferences for informational purposes only, and it reflects the market and industry conditions and presenter’s opinions and affiliations available at the time of the presentation.

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