Adaro plans to increase output to 56m tons this year

Despite the government?s plan to limit the country?s coal production this year, IDX-listed coal giant PT Adaro Energy Tbk plans to ramp up production to 54-56 million tons from last year?s output of 52.27 million tons, Kontan daily reported Thursday.

Company Corporate Secretary Devindra Ratzarwin said that to help achieve the higher production target, the company has allocated capital expenditure of US$200-250 million for this year. ?All will be for operation and maintenance, not for acquisition,? he said.

He added that the 2014 production plan has yet to be approved by the Ministry of Energy and Mineral Resources, which reviews the budget and work plans of coal miners holding the so-called PKP2B contracts of work.

Adaro?s 2014 coal production will largely come from key mines operated by subsidiary PT Adaro Indonesia including Tutupan, Paringin, and Wara, the paper said.

The company exports its output mainly to China and India. ?There are 50 buyers in 12 countries. We directly sell to end users, not via traders,? Devindra said. (*)