The Ministry of Energy and Mineral Resources (MEMR) is gearing up for a significant shift towards underground coal mining, as highlighted by Irwandy Arif, Special Staff for Acceleration in Mining Sector Governance at the MEMR.
This move comes in response to the decreasing availability of near-surface mineral deposits and aims to mitigate the environmental impacts associated with surface mining.
During a recent address in Jakarta, Irwandy noted the growing trend towards underground mining in the future, citing its relatively lower environmental risks despite higher operational and capital costs. Underground mining operations incur about twice the operational costs and 3-4 times the capital costs compared to open-pit mining.
However, Irwandy underscored the potential for cost reductions through the adoption of disruptive mining technologies.
He said as quoted in a statement issued by the ministry on Friday that the depletion of high-grade deposits near the surface is pushing Indonesia's mining sector towards deeper deposits, which are less accessible through open-pit methods due to limitations in the stripping ratio.
Irwandy also mentioned the tightening environmental regulations and the reduced effectiveness of mechanical equipment in deeper open-cast mines as additional factors necessitating this shift.
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Indonesia's potential for underground coal mining is significant, with major reserves identified in several basins, the ministry said. The Barito & Asam-Asam Basins alone hold an estimated 530.711 million tons, while the Kutai and Tarakan Basins and the South Sumatera Basins have potentials of 12,344.515 million tons and 20,658.330 million tons of coal, respectively.
Besides PT Sumber Daya Energi (the local subsidiary of China Qinfa Group), which recently started its first underground mining operation, there are 15 other underground coal mining companies in Indonesia. These include entities such as CV Air Mata Emas and PT Nusa Alam Lestari in West Sumatra, and PT Merge Mining Industry in South Kalimantan, among others.
This strategic pivot towards underground mining demonstrates Indonesia's commitment to sustainable mining practices. It also highlights the country's effort to explore and utilize its deep-seated mineral wealth, while adhering to environmental stewardship and adapting to global mining trends, the statement concluded.
Editing by Reiner Simanjuntak
