CONSERVATION AND INVENTORY OF COAL RESERVE RESOURCES IN PT BARAMULTI SUKESSARANA TBK

Reporter:

Ageng Febriyani (12120013)

Muhammad Gymnastiar Nikkei A. (12120024)

The increasing demands for coal in China, Japan, and South Korea have begun the global coal price influencing the Reference Price for Coal (RPC) in August 2021. The increasing RPC lasting to the end of 2022 was presented in the following graphics.

NHowever, the price of coal, in fact, has recently decreased. Referring to the Bloomberg’s data, the coal price for the delivery contract in March 2023 at the Stock Market of ICE Newcastle (14/2) was in the level of US$ 194.50 per ton, decreasing up to 2.13% from the previous day which was at the level of US$ 198.75 per ton. Meanwhile, when seen from the coal price per the end of 2022, the coal price was still at the level of US$ 350 per ton.

Baramulti Group’s Coal Production

Up to the end of 2021, Baramulti Group had owned the Mining License (known as IUP/Izin Usaha Pertambangan) on coal within the areas of 24.518 hectares spread in five regencies in Kalimantan Island. The total coal reserves and resources belonging to Baramulti Suksessarana Tbk and PT. Antang Gunung Meratus based on the JORC reports arranged by Aseamco per 31 Mei 2012 respectively reached 59.6 million tons and 860.7 million tons. Based on the reserves and resources reported by Baramulti to JORC, the reserves belonging to Baramulti Group almost reached 62 million tons. The annual coal production made by Baramulti Group reached 15 million tons in 2022. Due to the increasing demands of coal in 2021 up to the end of 2022, Baramulti Group made further exploration for some subsidiary companies, including BSSR in north Kalimantan, Antam Gunung Meratus in South Kalimantan, Mitra Bara in North Kalimantan areas, and some other small companies under Baramulti Group. Life of mine PT. Antang Gunung Meratus is estimated up to 2027, while Baramulti Suksessarana Tbk still has very long life of mine, and other sites under Baramulti Group still has not been estimated its life of mine since exploration is still continued until now.

Baramulti Group’s Coal Conservation and Inventory

Based on an interview with Bang Calvin Trias as the staff of Baramulti, he explained that there were some IUPs that needed to be reviewed for further exploration. This will likely make Baramulti Group’s reserve to increase. Modifying factor greatly influences the existence of Baramulti Group’s mined reserve, where economy is one of the important factors. Baramulti Suksessarana Tbk (BSSR) is currently revising the Joint Ore Reserves Committee (JORC). The IUP’s area with only resource status is revised to be mineable reserve.

Review of the area of IUP of mined reserve and further exploration that Baramulti Group expects are performed due to coal price’s rising, so that Baramulti Group will remain able to fulfill the demand for coal domestically and overseas. Coal mining in Baramulti previously used Stripping Ratio 5, but with the rising price coal and alleviated social-economic condition, adding Stripping Ratio 7 is still practical and considered economical. Some areas declared mine out can be re-mined. Although by JORC Baramulti Group’s mined reserve is decreasing, however, Baramulti still reviews it and performs further exploration in come of its blocks.

The reserve inventory program is performed through more intensive further exploration. Further exploration is performed to increase Baramulti Group’s inventory.

Baramulti Group’s Reclamation and PostMining

Baramulti Group has planned post-mining handling. When Baramulti’s life of mine has ended, smart city will be made for the previously mined area. As for reclamation, cover crop will be planted. Because of the written rules, reforestation must be performed on excavated land. Re-vegetation on cover crop will be the fastes to grow. Baramulti also performs high mining and exploitation on local plants growing area. Local plants that are affected by Baramulti Group’s coal mining exploitation are Kalimantan durian, dragon fruit, nuts, etc. Therefore, besides planting fast growing plants, local plants are also planted to return local plants habitats that have been affected by Baramulti Group’s mining exploitation activities.

Source: https://unsplash.com/

Contributor: Reneiro Addison Soares Sembiring

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