Arutmin to boost coal production by 24% this year

PT Arutmin Indonesia, one of the country's largest coal mining company, is set to increase coal production by 24 percent this year to about 18.6 million tons from about 15 million tons this year, Bisnis Indonesia reported on Saturday.

The South Kalimantan-based coal producer's operation director Endang Ruchiyat said that Arutmin's production reached only about 15 million tons in 2004, far below the initial target of 18 million tons, due to unfavorable weather and the growing illegal mining activities.

"This year, the company is set to increase the production to 18.6 million tons, part of the increase will come from the production of low-grade coal," he was quoted as saying.

Arutmin plans to produce about 6 million tons from its Satui mine, 4.5 tons from Senakin mine and about 2 million tons from the Batulicin mine, this year. The company also plans to double the production of low-grade coal to about 4 million tons in its Asam Asam mine.

In addition to weather problems such as rains, the growing illegal mining activities in its mine concession area had hampered production activities in 2004.(*)