With Latest Technology, Sumber Daya Energi Pioneers Large-Scale Underground Coal Mining

By : Abraham Sihombing | Wednesday, December 20 2023 - 13:50 IWST

PT Sumber Daya Energi's underground coal mining atmosphere. (The Company’s PR)
PT Sumber Daya Energi's underground coal mining atmosphere. (The Company’s PR)

INDUSTRY.co.id - Kotabaru, South Kalimantan - PT Sumber Daya Energi (SDE) has achieved a significant milestone by officially commencing commercial operations of its first large-scale underground coal production.


The inauguration ceremony took place at the SDE-1 mine site in Kotabaru, South Kalimantan, and was attended by the Economic and Trade Counsellor of the Chinese Embassy in Indonesia, Wu Zhiwei; the Director General of Mineral and Coal, Bambang Suswantono; the Deputy for Investment Services of the BKPM Investment Ministry, Achmad Idrus; the South Kalimantan Government representatives, the Kotabaru Regency Government representatives; and the President Director of Qinfa Group, Xu Da.


At the inauguration ceremony, the Qinfa Group President Director, Xu Da, expressed his appreciation for the support received from various government agencies in facilitating the commercial operation of the SDE-1 mine.


“We are excited and grateful for the opportunity to participate in the development of the mining sector in Indonesia. Today, we are introducing a paradigm shift in the Indonesia’s mining sector by operating our underground coal mine with the latest technology. Committed to setting new standards in responsible mining practices, we’re committed to enhancing and positively impacting economic growth both locally and nationally,” Xu Da explained.


With a total investment of US$300 million spent from the construction phase in 2021 up to now as well as the investments that will continue to be placed in the future, the company does not only contribute to the growth of Indonesia's mining sector, but it also has a positive impact on the country’s economy.


Attending at the inauguration ceremony, the Economic and Trade Counsellor of the Embassy of the People’s Republic of China in Indonesia, Wu Zhiwei, clarified,” From January to October this year, the bilateral trade volume between China and Indonesia reached US$114.5 billion. The trade structure was further optimised, and the trade volume of high value-added products such as automobiles and raw materials for electric batteries increased significantly. In the first three quarters, the direct investment from China in Indonesia totalled US$5.6 billion. The energy and mining industry, as the main field of practical cooperation between the two countries, accounted for nearly 40%, to which Qinfa Group also contributed.”


Meanwhile, the Director General of Mineral and Coal, Bambang Suswantono, in his speech stated,” In conducting coal mining, the company uses the underground mining method. Based on the Feasibility Study Approval document and the Environmental documents, the company has a maximum coal production capacity of 20 million tonnes per year, which will make the company as the largest coal mining company in Indonesia that produces coal using the underground mining method.”


While speaking at the inauguration ceremony, the Deputy for Investment Services of the Ministry of Investment/BKPM, Achmad Idrus, expressed his gratitude to China Qinfa Group for choosing Indonesia to place its investment,” The investment at PT SDE is very important for economic growth and investment realisation. The investment target for 2024 is IDR1,650 trillion and the investment placed by China Qinfa Group is very important.”


With the commencement of commercial operations, the company will bring positive impacts to the local community, including creating jobs and empowering local SMEs. Beyond its economic contributions, the company is also steadfast in its commitment to improve the quality of human resources through educational initiatives such as the construction of a primary school building for SD Magalau Hulu.


In collaboration with the Underground Mining Education and Training Centre (BDTBT/ Balai Pendidikan dan Pelatihan Pertambangan Bawah Tanah) under the Human Resources Development Agency of the Ministry of Energy and Mineral Resources (BPSDM ESDM), the company also actively facilitates its employees to participate in underground mining training programmes. The company also contributes to community development by recruiting graduates from community training programmes organised by BDTBT.


Recently, in collaboration with Kotabaru’s Department of Manpower and Transmigration (DISNAKERTRANS), the company facilitated ten of its local employees to the BDTBT in Sawahlunto, West Sumatra, for underground mining training. This initiative demonstrates the company’s commitment to continuous learning, skills development and community engagement, as well as its dedication to fostering a skilled workforce and contributing to the sustainable development of local communities.



About PT Sumber Daya Energi


PT Sumber Daya Energi (SDE) is an underground mining company affiliated with China Qinfa Group Ltd. Since 2021, the company has been actively involved in the development of an underground mine located in Kotabaru Regency, South Kalimantan covering an area of 185 km squares. The developed mines, SDE-1 and SDE-2, are designed with a planned production capacity of 20 million tonnes per year. The company is committed to upholding the highest standards of safety, innovation and responsible mining practices throughout its operations.


In addition to its economic contribution, the company emphasises sustainability and is actively involved in local community empowerment initiatives. The company’s commitment extends beyond mining, demonstrating its role in creating a better future for the Indonesian future generations.***

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