PT Indominco Mandiri (IMM), a subsidiary of PT Indo Tambangraya Megah Tbk. (ITMG), is preparing to apply for an extension of its coal-mining operating license by converting its coal Contract of Work (PKP2B) into a Special Mining Business License (IUPK).“IMM’s PKP2B license will expire in 2028. If the IUPK is approved, this ITMG subsidiary can continue coal production for another 10 years.”IMM’s Head of Mining (KTT), Eddy Susanto, explained that the company’s 24,121-hectare concession area still holds around 45 million metric tons of coal reserves. With this potential, the company is targeting coal production of 7.30 million tons in 2025, 8 million tons in 2026, and 7.10 million tons in 2027.Specifically for 2025 and 2026, IMM has submitted a revision to its Work Plan and Budget (RKAB) to the Ministry of Energy and Mineral Resources (ESDM) so that realized production aligns with the latest projections.“So the recent revision was for this year’s [target]. This year our original target was 6.9 million metric tons. But based on actual performance and our forecasting through December, it looks like we can produce more. That’s why we submitted a request for revision,” he said in Bontang, East Kalimantan, Wednesday (September 24, 2025).Eddy added that, under regulations, applying to extend the mining license to an IUPK requires a downstreaming commitment. IMM previously completed a preliminary study for coal gasification, or underground coal gasification (UCG), at the end of 2022. The project was initially targeted to start commercial operations in 2025, with pilot trials in 2023–2024 and a feasibility study completed in 2025.In the initial phase, the company also planned to sign a memorandum of understanding with PT Pupuk Kaltim (PKT) as a prospective buyer of the gasification output. However, the plan was postponed after the company found that gasification technology has not yet been proven commercially in Indonesia or in other countries such as Australia and Uzbekistan.In addition, PKT is said to have found a new source of supply that is more abundant and cheaper than the output from gasification.“In the end, management thought: this is a high-investment project, but the technology isn’t proven yet. This was compounded by the fact that our potential customer, PKT, found a new, abundant source at a lower cost than what we could supply. This made us rethink—we’re switching,” he explained.
Source https://djakarta-miningclub.com