PT Kaltim Prima Coal


The Government of Indonesia invites tenders from foreign companies for the exploration and development of coal resources in east and south Kalimantan. A BP/CRA joint venture was successful in bidding for an area of 7,900 sq. km in two blocks extending 300 km along the coast of eastern Kalimantan


PT Kaltim Prima Coal (KPC) incorporated in Indonesia with BP and CRA each holding 50% of the shares. KPC licensed to conduct exploration and mining of coal based on a Coal Contract of Works (CCOW) with the concession covering 90,706 ha. The Indonesian State Coal Company (PTBA) to receive 13.5% entitlement of all production


KPC decision to proceed with the development of an export mine with a design capacity of 7 million tonnes per annum (Mtpa) following detailed exploration and a feasibility study of prospects close to Sangatta. The prospect has substantial quantity of high quality coal reserves, is close to a coast line with deep water and is strategically located to service growing markets. KPC subsequently relinquished most of the original Agreement Area, retaining 1,961 sq. km


Construction commences in January. The budget for the project is US$570 M


Work on the large scale mine development commences in June


All major items were commissioned by late 1991


Commercial exports begin in January 1992


On 16 July 2003, PT. Bumi Resources Tbk. (The Company) signed a Sales And Purchases Agreement with BP and Rio Tinto (CRA) for acquisition of PT Kaltim Prima Coal. On 10 October 2003, the Sales And Purchase agreement was completed.

PT. Bumi Resources Tbk was established in 1973 and is a publicly listed company on the Jakarta and Surabaya Stock Exchanges.

The Company’s core businesses are in Oil and Gas and Mining and Energy. Since it’s listing in 1990, the company has made a number of key acquisitions including Gallo Oil (Jersey) Ltd., PT Arutmin Indonesia and PT Kaltim Prima Coal. These acquisitions are in line with the Company’s vision to become a World Class Operator with World Wide Operations in its core business sectors


KPC operations are located around Sangatta, the capital of the East Kutai Regency (Kutim), in the East Kalimantan province of Indonesia. The town is on the Sangatta River, 50 km north of the equator on the east coast of Kalimantan Island, 180 km north of the provincial capital Samarinda and 310 km north of the major population centre of Balikpapan.

KPC has a number of operating pits in the Sangatta mining area mined directly by KPC and by contractors.

In June 2005, Mining operations commenced at the Bengalon mine approximately 25 Km to the north of the Sangatta. Bengalon mining operations are contracted to PT Darma Henwa.

KPC’s Sangatta mines are close to the port facilities at Tanjung Bara which is linked to the mine by an overland conveyor of approximately 13km in length. The Bengalon mine is also close to the coast being linked to its port facilities by a 22km haul road. The close proximity of all the mines to the ports provides KPC with the advantage of low mine to port transportation costs.

Most of KPC’s employees live in company built housing areas at Swarga Barga and Prima Griya Lestari which nestle between the mining operations administration centre and the town of Sangatta. Other employees reside at Tanjung Bara community approximately 17 kilometres from the mine.

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