Kaltim Prima Coal

The coal deposit supporting the KPC mining area is of the Miocene Age. It occurs in the Balikpapan formation within the Kutai Basin 20 km from the coast in low, undulating rainforest country with incised stream channels and steeply sided ridge tops in places.

The coal was formed under geological conditions which resulted in almost uncontaminated organic deposits which were, over the past 20 million years, converted into thick, clean coal seams containing unusually low levels of ash. In addition, the coal was subjected to unique pressures exerted by a geological intrusion called the Pinang Dome. These pressures elevated the coal to a higher rank than its age would normally suggest.

Coal deposits divided onto two blocks named Sangatta Block and Bengalon Block where these two area separated by Bengalon River in the centra of KPC’s lease.

In Sangatta Block, coal occurs in nine principal seams to the west of the Pinang Dome and four principal seams to the south. Seam thickness varies from 0.5 metres to 15 metres, with most in the range 2 to 6 metres. Dips normally vary between 3 degrees and 20 degrees but can be up to 90 degress at outcrop. The overburden consists of incompetent mudstones, siltstones and sandstones.

In Bengalon Block, coal occurs in three principal seams in the west part of Bengalon and three other seams in the east part. Seam thickness varies from 0.8 metres to 10 metres. The dip varies from 5 degrees and 12 degrees. Bengalon has more complex geological setting where folds and faults are limiting coal deposits.

*(in million metric tons) as of 31st December 2005