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Essar Energy receives final approval for Indonesian coal block


Published Jun 11, 2012
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Essar Energy

Essar Energy has received final 'Pinjam Pakai' forest approval for its Aries coal mine in Indonesia. This is the final approval needed ahead of commencement of mine development activities.

Essar Energy acquired a 100% interest in the Aries coal mine in April 2010 for US$118 million. The mining area comprises approximately 5,000 hectares located in the West Kutai region of East Kalimantan.

A Joint Ore Reserves Committee (JORC) compliant resource assessment estimates that the block contains approximately 64 million tonnes of mineable reserves with an annual potential production of 4 million tonnes of coal with an average gross calorific value of 5,400 to 5,500 Kcal/kg. This is sufficient to provide a dedicated fuel supply to the Salaya I, 1,200 MW coal-fired power plant located in Gujarat, India.

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