Arutmin will lower coal production at Satui mine

PT Arutmin Indonesia, one of the country's coal producers, will reduce its coal production at the Satui coal mine in South Kalimantan by about one million tons to six million tons this year, Investor Daily reported on Tuesday.

The manager for the Satui mine operation, Widhy Hartono said in Satui on Monday that the production level would remain about six million tons until 2008 because of the increase in the stripping ratio (SR) in the mine site.

According to him, the SR, the ratio between the earth being removed and the coal deposit, had reached the level of 10 against one as compared to the ideal level of six against one. With such high SR ratio, the mining operation would become more costly, he said.

"With the current ratio of 10:1, the ideal production level in the Satui mine area is about six million tons a year," he added. (*)