Arutmin may miss 2002 production target

South Kalimantan based coal mining PT. Arutmin Indonesia said on Friday it might not be able to meet this year?s production target of 11.8 million tons as it was still faces by problems such as labor strikes, road blockages and illegal miners, a company official said Friday.

?Until May this year, production was at 4.3 million tons. We were only able to process 860,000 tons of coal per month. If this rate is continuing, we won?t be able to reach production target of 11.8 million tons this year, Sonny Pangestu, Arutmin?s external relations manager told Petromindo.Com.

Arutmin produced 9.5 million tons of coal last year.

Arutmin had been facing production disruption such as contractors? workers strikes, road blockages by villagers, which often disrupt production. Illegal miners, with back up of government officials, also operating freely within the company?s contract of work areas.

Pyblicly-listed firm PT. Bumi Resources that bought the company from BHP Billiton last year controls Arutmin. But BHP Billiton retains the right to market 75 percent of Arutmin?s production. (godang)