Antang coal production drops on lack of forestry permit

South Kalimantan coal miner PT.Antang Gunung Meratus is forced to cut down production since last year after the company failed to get permit from Ministry of Forestry to open new pit within its contract area.

A company official, who declined to be named, told Petromindo.Com on Thursday that in 2006, it only managed to produce 200,000 tonnes, much lower from 2005 production of 1 million tonnes.

The official said cumulative first half 2007 production reached only 130,000 tonnes. ?Revenue from production is barely enough to pay for employees salaries,? said the official.

?The permit to use 4,400 hectares productive forest within the contract area had been withheld by Ministry of Forestry since 2003,? the official said. The area has some 30 million tonnes of coal reserves, the official said.

The source said that the company could immediately increase production to designed capacity of 1.5 million tonnes per year if allowed to exploit the area.

The company currently produces two kinds of coal with CV of 5,000-5,500 Kcal/kg and 6,000-6,500Kcal/kg. The company sells its coal production to PT.Asia Pacific Coalindo and other domestic traders. (denny)