Adaro sees output increase possible in 2005

South Kalimantan coal producer PT.Adaro Indonesia is fully contracted at current production level to the end of 2005, New Hope Corp. (NHC), Adaro?s shareholder said Tuesday.

Adaro is expected to produce 24 million tons of coal this year.

NHC said Adaro had commenced the sealing of its haul road to increase road haulage capacity and reduce environment impact. The project is expected to be completed by April 2005 and should enable higher level of coal haulage. Ongoing expansion work is also being undertaken at Adaro?s barge loading and stockpile center at Kelanis on the Barito River in Central Kalimantan, designed to increase coal-handling capacity.

NHC said Adaro would maintain current production levels with output growth possible on completion of the sealing of its haul road and upgrade in barge loading capacity. The company, however, did not say expected production increase when upgrading works would be completed.

NHC also said Adaro had commenced studies to develop its Wara deposit, which has 611 million tons of mineable coal reserves. (alex)