Banpu?s Jorong to cut 50% of 2010 coal output

South Kalimantan coal miner PT Jorong Barutama Greston (JBG) revises downward its 2010 coal output target by 50 percent to 1 million tons due to land permit problem, a company officer told Petromindo.Com.

Mine head Pongsak Dejmark said on Tuesday that JBG was forced to cut its 2010 target because the mine was still closed pending a resolution by the Ministry of Forestry. ?The problem is expected to be solved by the end of next month,? he said.

JBG is a subsidiary of Indonesia-listed coal miner PT Indo Tambangraya Megah (ITM), which is controlled by Thai energy conglomerate Banpu PCL.

Last month, Banpu said that it would maintain an output target of 2 million tons. Banpu?s CEO Chanin Vongkusolkit said the company expected the Indonesian government would finalize new forestry regulations soon, with clearer designations of which areas are to be preserved as forest areas.

In early February 2010, JBG was forced by local police to stop its mining operations due to problems related to land permit. (denny)