SDE Pioneers Large-Scale Underground Coal Mining in Indonesia with the Latest Technology

Kotabaru – PT Sumber Daya Energi (‘PT SDE’) has achieved a significant milestone by officially commencing its first large-scale underground coal production commercial operations.


The inauguration ceremony took place at the SDE-1 mine site in Kotabaru, South Kalimantan, South Kalimantan Monday (18/12/2023), attended by Economic and Trade Counselor of the Chinese Embassy in Indonesia Wu Zhiwei, Director General of Minerals and Coal Bambang Suswantono, Deputy for Services Investment from the Ministry of Investment BKPM, Achmad Idrus, representatives of the South Kalimantan Government, representatives of the Kotabaru Regency Government, and President Director of Qinfa Group, Xu Da.


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


“We are very happy 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 Indonesian mining sector by operating our underground coal mines with the latest technology. Committed to setting new standards in responsible mining practices, we are committed to improving and positively impacting economic growth both locally and nationally,” said Xu Da.


With a total investment of USD 300 million spent from the construction phase in 2021 to date and investment that will continue to be placed in the future, PT SDE not only contributes to the growth of Indonesia’s mining sector, but also has a positive impact on the country’s economy.

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Present at the event to witness the inauguration, Economic and Trade Counselor of the Embassy of the People’s Republic of China in Indonesia, Wu Zhiwei said, “From January to October this year, the volume of bilateral trade between China and Indonesia reached US$114.5 billion. The trade structure has been further optimized, and the trade volume of high value-added products such as cars and electric battery raw materials has increased significantly. In the first three quarters, direct investment from China in Indonesia amounted to US$5.6 billion. The energy and mining industry, as the main areas of practical cooperation between the two countries, accounted for nearly 40%, to which the Qinfa Group also contributed.”

Meanwhile, the Director General of Minerals and Coal, Bambang Suswantono, stated in his speech, “In carrying out coal mining PT SDE uses underground mining methods. “Based on the Feasibility Study Approval document and environmental documents, PT SDE has a maximum coal production capacity of 20 million tons/year, which will make PT SDE the largest coal mining company in Indonesia that produces coal using underground mining methods.”


Speaking at the inauguration event, Deputy for Investment Services at the Ministry of Investment/BKPM Achmad Idrus expressed his gratitude to China Qinfa Group for choosing Indonesia to place its investment, “PT SDE’s investment is very important for economic growth and investment realization. The investment target for 2024 is 1,650 trillion and the investment placed by China Qinfa Group is very important.”

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With the start of commercial operations, PT SDE will have a positive impact on the local community, including creating jobs and empowering local SMEs. Beyond its economic contribution, PT SDE is also steadfast in its commitment to improving the quality of human resources through educational initiatives such as the construction of elementary school buildings at SD Magalau Hulu.


In collaboration with the Underground Mining Education and Training Center (BDTBT) under the Human Resources Development Agency of the Ministry of Energy and Mineral Resources (BPSDM ESDM), PT SDE is also actively facilitating its employees to participate in underground mining training programs. The company also contributes to community development by recruiting graduates from community training programs organized by BDTBT.


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


PT Sumber Daya Energi (“PT SDE”) pioneered the first large-scale underground coal mining operation in Indonesia, marking a significant change in the national mining landscape.

With a coal concession covering an area of ​​185 km2 located in Sungai Durian, Kotabaru, South Kalimantan, the PT SDE coal mine is estimated to have coal reserves of 293 Mt. and coal resources of 589 Mt. This mine is designed with a production capacity of up to 20 million tonnes per year (Mtpa) of coal, so it is able to make a major contribution to Indonesia’s energy sector with an estimated mine life of 15 years.

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PT SDE is committed to contributing more than just the economy, by placing equal emphasis on social and environmental responsibility. The company prioritizes social contribution by encouraging community involvement, supporting local businesses and emphasizing safety throughout its operations.


About PT Sumber Daya Energi


PT Sumber Daya Energi (“PT SDE”) is an underground mining company affiliated with China Qinfa Group Ltd. Since 2021, PT SDE has been actively involved in developing an underground mine located in Kotabaru Regency, South Kalimantan covering an area of ​​185 km2.

The mines being built, namely SDE-1 and SDE-2, were designed with a planned production capacity of 20 million tons 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, PT SDE emphasizes sustainability and is actively involved in local community empowerment initiatives. The company’s commitment does not only cover the mining sector, but also shows its role in creating a better future for Indonesia’s future generations.


Anang Fadhilah