Adaro says no plan for capacity expansion

Indonesia?s largest coal producer PT. Adaro Indonesia said Monday it would not expand its production capacity and would maintain production of 22-23 million tons per annum in the years to come.

?This year, Adaro?s production is set at 22 million tons, and after that, production is set at around 22-23 million tons per annum, which is Adaro?s production capacity, ? said general manager Ah Hoo Chia in Coaltrans conference in Bali.

?There are several reasons to make us come to the decision, first, current coal prices do not justify capital expenditure to increase capacity, coupled with unfavourable investment climate which will make fund raising difficult and the second is we are already satisfied with our customers portfolio.?

Chia said in the future Adaro would focus more to achieve higher efficiency; applying cost cutting measures and find better ways to serve customers.

Adaro currently has large customers basis in Indonesia and overseas and sells 95 percent of its product in long-term contract.

Adaro operates a huge coalmining in South Kalimantan. (alex)