"We target the start of production in 2007," PNOC president Peter Aquino Jr. said
Aquino said PNOC-EC representatives have visited the proposed mine site in Indonesia to conduct reconnaissance, geologic mapping and gathering of coal samples for laboratory analyses.
The PNOC chief said the oil, gas and coal exploration firm has a substantial 30-percent share, or $3.91 million, in the Indonesian project’s total cost of $13.03 million.
According to Aquino, the coal exploration projects are seen to have total potential reserves of 100 million metric tons (MT).
PNOC-EC’s 5,000-hectare concession area is located in Ampah, Tamiang Layang, Barito Utara, Central Kalimantan.
Aquino said the area is accessible via a seven-hour land travel from Balikpapan or a six-hour land travel from Banjarmasin. A loading port is situated in Barito River with a 7,500-ton barging capacity.
When coal occurrence in Ampah was verified, coal samples were collected for laboratory analysis, he said.
Based on the results of the investigation, at least four coal seams, with thickness varying from two to four meters, have been identified as bituminous coal, or a kind of coal with high-grade quality.
Initially, about 12.5 million MT of potential reserves have been computed over a 300-hectare of the Ampah concession area.
With these, PNOC EC has conducted due diligence on the viability of entering into a joint venture agreement (JVA) with PT Putra Asyano Mutiara Timur (PAMT) for the development, production and marketing of coal from the Ampah coal project in Central Kalimantan, Indonesia.
PNOC-EC has also entered into a JVA with PAMT for a joint coal mining project of the Ampah coal concession in East Kalimantan, Indonesia.
After PNOC-EC representatives started due diligence activities in Indonesia in March 2006, it also completed an ocular inspection on three coal operating mines, and a gathering of coal samples from the outcrops exposed at the local concession of PAMT.
PNOC-EC said it had likewise reviewed details of the activities of Ampah for the exploration drilling, topographic survey and related budget.