Qinfa Group Ltd., through PT Sumber Daya Energi (SDE) has so far disbursed a budget worth USD 300 million or the equivalent of IDR 4.6 trillion to build the SDE 1 underground coal mine area, out of the three planned SDE mine locations in Kotabaru, South Kalimantan.
The mine with a depth of 180 square kilometers is estimated to be able to produce up to 15 years, with mineable coal reserves of 293 metric tons.
Deputy for Investment Services at the Ministry of Investment, Ahmad Idrus, said that the Qinfa Group’s investment in South Kalimantan is expected to be able to trigger national economic growth and investment realization targets.
“Investment from the Qinfa Group is very important and strategic in the context of realizing this investment,” said Ahmad Idrus at the ‘Inauguration of the First Production of the SDE 1 Underground Plant’, Monday (18/12/2023).
Ahmad Idrus said that the Ministry of Investment will support Qinfa Group in terms of licensing. Apart from that, the government will also support from a non-licensing perspective, for example fiscal facilities such as tax holiday.
President Director China Qinfa Group, Xu Da, added that his party is committed to creating a positive impact, including job opportunities and empowering MSMEs around the region mine.
“We are committed to improving and having a positive impact on economic growth, both locally and nationally,” he said.
Meanwhile, the value of this investment will continue to increase, in line with PT SDE’s plans to build SDE 2 and 3 mines. Each existing mine is designed to produce 10 million tons of coal per year.
The SDE 1 mine itself has officially started production starting today, Monday (18/12/2023), while the SDE 2 mine is targeted to start operating in 2024.
For Information, PT SDE is the holder of a mining business permit (IUP) for foreign investment (PMA). in accordance with the Decree of the Minister of Investment/BKPM No.4/1/IUP/PMA/2023 dated 9 February 2023 with a validity period of up to 14 May 2034 with an area of 18,500 hectares.
In carrying out mining activities, PT SDE uses underground mining methods. According to the Feasibility Study Approval document and environmental documents, PT SDE has a maximum coal production capacity of 20 million tons per year, which will make PT SDE the largest coal mining company in Indonesia that produces coal using underground mining methods.
Image source: PT Sumber Daya Energi