ABM lowers production target to 4 million tons

By Hiski Darmayana

Publicly listed coal mining company PT ABM Investama Tbk has lowered its production target to four million tons this year from about 5.5 million tons previously set by the company due to unfavorable market situation.

?The unfavorable market situation has forced us to revise our production target,?

ABM Investama?s President Director Andi Djayanegara told Petromindo.com mining news portal on Tuesday.

Although there was a cut in the production, the new target of four million tons was still higher than the production recorded last year, he said.

Andi said that realized production reached 1.88 million tons during the first six months of this year.

He said that the company?s total revenues until the end of this year would be seriously affected by the fall in the realized average selling price since the middle of this year. The company predicted earlier this year the average selling price of US$53 per ton.

?But in the reality, the company sold its coal at an average price of between $41 and $42 per ton,? he said.

According to him, the overseas demand for the company?s coal remained strong especially from India because the company?s coal?s grade is suitable for most power plants in the country. However, the demand from China has begun to decline, he added. ?Besides India and China, we also plan to export to the Philippines and Thailand,? Andi said.

Editing by Adianto P. Simamora