Adaro may be forced to cut output

Indonesia's largest coal producer PT Adaro Indonesia may have to cut down its output in the following months due to the dredging work in Barito River in South Kalimantan, which is expected to commence next month.

The company used the river to transport its production to the coal port.

An official from the company said Monday that the dredging work would take several months to complete, and during the work, traffic on the river will be limited to 12 hours.

"We do not know yet how much the limitation would effect our production," he said.

However, an industry source estimated that Adaro's output could be down as much as 20 percent. Coal barges, said the source, would have difficulties in passing thru the river since priority would be given to ships that transports basic needs and passengers.

Adaro produced 15.5 million tons of coal in 2000

Meanwhile, director for mineral and coal venture of the ministry of energy and mineral resources Mahyudin Lubis told Petromindo.com Monday that the ministry would urge South Kalimantan provincial administration to give priority to Adaro to transport its coal because the company is one of the main coal supplier for Indonesia Power's Suralaya coal fired power plant, which supplied 30 percent of Java island power requirement. (alex/godang)