East Kalimantan, Indonesia

I've never been to East Kalimantan, Indonesia.

It is located on the Eastern side of the island of Borneo. It contains some of the largest intact wilderness areas in Indonesia. Areas containing rain forests, limestone spires and large, undisturbed mangrove and seagrass beds all reside in East Kalimantan.

Just off the coast of the peninsula is a protected coral reef. It conatians 70 types of coral. The endangered green turtle and the hawksbill turtle nest here.

The Berau region houses 80 types of endangered tree species. Berau Bay is an important migration route for marine mammels. Many endangered species reside in this area. This includes gibbons, the sun bear, orangutans, Probiscus monkeys, and wild cattle.

Also located here is KAL Energy, Inc. You can read about their coal mining industry in this press release and on the KAL Energy website.

I hope they are taking steps to conserve the beautiful part of the world they are in.


That I'd like to see.

KAL Energy Uses Indonesian Infrastructure Advantages to Propel Business

A 2006 report by AME Mineral Economics states that Indonesia has become the world’s top thermal coal-producing area, taking a distinct lead over former top producers Australia and South Africa. While many in the industry might attribute the change to better mining techniques or higher quality product, the real answer lies within a somewhat surprising realm -- transportation.

“A low cost transportation infrastructure is essential to the economic exporting of coal,” states KAL Energy CEO Cameron Reynolds. “It’s one of the reasons Indonesia has jumped ahead in the market; other areas in the world have simply failed to, or can’t, overcome infrastructure constraints.”

KAL Energy’s mineral claims are located in East Kalimantan, Indonesia -- a region of active coal export since the 1980s. According to Reynolds, several infrastructure elements allow the region to maintain world-leading production rates. Among these are rapid rates of scale production, a minimization of front-loaded capital expenditures and diminished unit costs in comparison to competitors. The close proximity of Kal Energy’s mine properties to both the Mahakam and Kadang Pahu Rivers provide for low cost barge transport of coal.

“While other regions around the world are stuck at a certain level of production, places like Kalimantan, in Indonesia, continue to ramp their production massively,” says Reynolds. “It’s definitely a factor that I think investors are starting to realize.” Kal Energy has recently become a public company, trading under the symbol KALG.

KAL Energy has already secured the rights to an estimated geological resource of 192 million tons of thermal coal. This coal has been identified to have a very low sulphur and ash content which allows it to be utilized for more environmentally friendly electricity generation than many other Asian coals. They have made plans to produce and ship 200,000 tons of its product to end users in the latter half of 2007, with additional plans to scale production to 5 million tons per year within the next four years and 15 million tons per year on a long-term basis, after the successful completion of the exploration program and subsequent world class mining feasibility study. The company expects further long-term demand through Coal-to-Liquid (CTL) technologies.

“When you find an advantage, you exploit it in every way possible; and that’s exactly what we plan to do long into the future,” adds Reynolds.




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