Arutmin to produce around 35m tons coal this year
Thursday, April 6 2017 - 12:43 AM WIB
Kalimantan coal mining firm PT Arutmin Indonesia, a subsidiary of IDX-listed coal giant PT Bumi Resources Tbk, plans to produce around 35 million tons this year in line with existing capacity of its infrastructure facilities.
Ido Hutabarat, CEO of Arutmin, said that production in the first quarter of this year reached 9 million tons.
?(Production) will stay at the level of 35-40 million tons,? Ido told Petromindo.com on the sidelines of the 5th Coal Buyers and Producers Meeting in Jakarta on Wednesday held by Petromindo Group.
Ido said that the production target is in line with the capacity of its infrastructure facilities that can only accommodate production of up to 45 million tons. He added that the company has yet to obtain certainty over extension of its current coal mining contract of work (PKP2B), which is set to expire in 2020.
Bumi has set coal production target this year at around 90 million tons, higher compared to around 86 million tons last year. The largest contributor to the production target is its East Kalimantan coal subsidiary PT Kaltim Prima Coal.
Arutmin, operates a combined coal concession area of 59,261 hectares in East and South Kalimantan, according to company website.
Editing by Reiner Simanjuntak