- Using open-air mining method in MPP bituminous mine in Indonesia
- Total deposits amount to over 16 million tons with annual output of 1.5 million tons
- Securing the 4th commercial mine in addition to mines in Australia, Russia, and Philippines
- Signaling LGI’s tangible achievements in overseas resources development this year
LG International Corp. this year has begun to produce bituminous coal in Indonesia, signaling a tangible performance in its overseas resources development.
On February 4, LGI (Vice Chairman and CEO: Koo Bon-joon) announced that the company began bituminous coal production in Indonesia. LGI is currently using an open-air mining method in the MPP bituminous mine located in the eastern part of Kalimantan (an Indonesian dominion in Borneo), Indonesia. The mine block covers 10.14㎢(1,014 hectares), which is 1.5 times the size of Yeouido (an islet in Seoul).
The recoverable reserves amount to over 16 million tons, and this figure accounts for 25% of 65 million tons of bituminous coal that Korea annually imports for use in generating electric power. The annual output is 1.5 million tons.
LGI is set to handle the total output of bituminous coal in this mine. LGI will bring the bituminous coal to Korea, and export it to Japan and Southeast Asian nations, among other nations.
By adding the MPP bituminous coal mine this time, LGI has now owned a total of four commercial mines including the Erel bituminous coal mine in the Republic of Sakha, a federal subject of Russia, the Ensham bituminous mine in Australia, and the RapuRapu copper mine in the Philippines.
An LGI official said, “The launching of the MPP bituminous mine signals a substantiation of LGI’s investment thus far made in overseas resources development projects. Within this year, we will begin a commercial production in four overseas mines including those in Oman and Kazakhstan.”
This year, LGI is poised to bolster country marketing for strategic nations such as Indonesia, Oman and Republic of Sakha in an effort to substantiate the performance of its existing overseas resources development business, and to expand into SOC, plant and other relevant fields.
◆Bituminous coal: a coal vis-à-vis anthracite coal. Unlike anthracite coal, it produces flames and high temperatures, allowing it to be used for power generation.
◆Open-air mining: It is a method designed to mine a mineral deposited in the earth surface area directly from the topsoil. This has the advantages of incurring low mining costs, ensuring safe work, and producing vast quantities.
◆Shareholding in the MPP mine: LGI - 40% and MPP(Megaprima Persada PT.) of Indonesia - 60%
◆Korea: the world’s second largest coal importer
◆Indonesia: the world’s first largest coal exporter
- Exports 25% of the world’s total supply
- Total coal reserves amount to 5.3 billion tons (83% of the reserves are concentrated in Kalimantan).
<Figure – The Map of MPP Bituminous Coal Mine in Indonesia>