Adaro urges South Kalimantan to drop channel fee

Coal mining giant PT Adaro Indonesia urges the South Kalimantan provincial administration to drop its plans to impose a channel fee for coal transports passing through the Barito river saying that it would create greater cost to the company.

Company administration manager Priyadi told Petromindo.com that coal production this year was supposed to increase amid a better weather condition.

The administration plans to impose a fee of equivalent to 25 U.S. cent per ton of coal transported via the river in a bid to increase local government revenue.

?The channel fee is still being discussed by the administration and the legislative council. But it seems likely that they will issue the ruling on this (fee). If they implement it our production cost will increase,? Priyadi said.

Adaro currently produces 55 thousand tons of coal per day, and the company expected to produce 4.5-5 million tons in the third quarter of this year.(Godang)