ATPK Resources cuts coal production target by 73%

Publicly-listed mining firm PT ATPK Resources Tbk will fail to meet its coal production target this year because the mining firms it recently acquired have delayed production activities, Kontan daily reported on Wednesday.

 

The company’s President Director Wasisto Budiharsoyo said in Jakarta on Tuesday that the company cut down the target by 73 percent from 600,000 tons to 160,000 tons because of the production delays.

 

“Originally, the company planned to start producing coal in the third quarter of 2007 but the production would begin in the fourth quarter,” he went on.

 

ATPK, which was previously involved in shrimp business, has acquired five coal mining firms as part of its decision to change core business.

 

On March 2007, Wasisto said that coal to be produced at the company’s mines would be sold to traders. He also said that  ATPK was  in negotiation with coal mining giant Bumi Resources’ trading arm Enercorp to sell one million tons per annum of ATPK coal to state owned electricity firm PT Perusahaan Listrik Negara via Enercorp. “We hope to be able to conclude the deal soon,” he said. (*)