Kolkata-based SPML Infra, formerly Subhash Projects & Marketing, is planning to increase production at its coal mine in Indonesia to 50,000 tonnes next month and double that in August, said vice-chairman Subhash Sethi.
The company has just dispatched its first batch of 16,000 tonnes.
Sethi said, “We currently sell the coal to local traders and then they sell it to companies here or abroad.”
The company will wait till it streamlines production before it starts exporting coal itself. “We need a sizeable production before we start exporting and that should happen by September,” he said.
Sethi had earlier said that 25-30% of the coal produced would be sold locally and the rest exported.
Indonesia had last year proposed to cap coal exports at 150 million tonnes a year.
SPML had in 2008 acquired the PT Bism mine along with power equipment maker Emco for $40 million and mining began last November.
SPML holds 55% and Emco the rest in the mine, which has reserves of over 100 million tonnes.
The companies have since invested more in equipment and mining activity, but Sethi refused to divulge the amount.
The companies had earlier targeted an output of 1 million tonnes by December. “We could go up to 3 million tonnes per annum,” Sethi said.
SPML is an infrastructure company whose mainstay is water projects.
While over 60% of its Rs 4,000 crore order book comprises water contracts, 11% is sub-stations and the rest other infrastructure areas.
“We are looking at closing the fiscal with a backlog of Rs 6,000 crore,” Sethi said.
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