By Lambok Dominikus
The Ministry of Energy and Mineral Resources said that the underground coal mine project of coal miner PT Sumber Daya Energi (SDE) in Kota Baru, South Kalimantan Province, remains suspended as investigation into the deadly mining accident in March has yet to be completed.
“Until now it is still suspended pending completion of investigation by the mining inspectors,” said Sunindyo Suryo Herdadi, Director for Coal and Mineral Engineering and Environment of the ministry, to Petromindo.com on Wednesday, without disclosing when the investigation would be completed.
SDE is a local subsidiary of Hong Kong-listed firm China Qinfa Group Limited. Three Chinese workers (underground mining specialists) employed by SDE reportedly were killed in the middle of March in a coal mining tunnel accident. Police suspected gas poisoning.
Read also: Police suspend SDE coal mine ops following fatal accident
"We have temporarily suspended SDE operations, pending the investigation process, to find out whether this was pure negligence or an accident or something else," South Kalimantan Police Chief Andi Rian R Djajadi told the media on 21 March.
SDE is developing an underground coal mine with production to start in 2024, and peak production projected at 20 million tonnes per year.
The company holds an IUP OP production operation mining license that will expire on 14 May 2034.
China Qinfa acquired 70% equity interests in SDE in 2021. SDE holds a 184 km2 coal concession in Sungai Durian, Kotabaru Regency. Based on the component person report as at 31 December 2021, the SDE coal mine is estimated to have probable coal reserves of 293 million tonnes and coal resources of 589 million tonnes.
Shirley Shi, Investment Vice-President of China Qinfa declined to comment when contacted by Petromindo.com.
SDE is 70 percent owned by PT Qinfa Mining Industri, and the remaining shares are held by PT Widyanusa Mandiri (25%) and PT Lintas Timur Investama (5%).
Editing by Reiner Simanjuntak
