Alfa Energi revises downward output target

By Cepi Setiadi

Coal mining company PT Alfa Energi has revised downward this year?s production target from its concession in Samarinda, East Kalimantan, to 300,000 tons from the initial target of 500,000 tons.

Aris Munandar, Director of Alfa Energi told Petromindo.com on Tuesday that the company has to revise the production target due to the current drop in coal price.

?Our (initial) proposal to the government (RAKB) was to produce 500,000 tons in 2015, but currently we are only producing between 20,000 tons to 30,000 tons per month due to the (weak) market condition, hence up to the end of this year we are expecting to produce only about 300,000 tons,? he said, adding that besides supplying the domestic market, the coals are also exported through traders.

Aris revealed that the company is currently targeting to complete ongoing exploration next month to find out a new JORC reserves at the concession. The concession covers about 2,000 hectares area with the coal CV of GAR 4,300 kcal/kg. Based on the previous JORC, the concession has about 10 million ton reserves.

Editing by Reiner Simanjuntak