Berau Coal cuts sales target, capex

East Kalimantan coal mining firm PT.Berau Coal said it would only be able to produce maximum of 14 million tonnes this year due to equipments shortage and heavy rains at its mining site.

CEO Bob Kamandanu told Petromindo.Com Wednesday that the company initially targeted to produce 15 million tonnes this year.

Bob also said Berau is eyeing shipment of 15 million tonnes next year, well below earlier target of 17 million tonnes. Bob said the cut was due to combination of softening demand in Europe and contractor?s inability to secure production equipments.

Bob said the company would cut 2009 capital spending to US$27 million from $60 million by delaying construction of a new loading port within the company?s mining concession. Berau is also delaying development of new pits. The delays are meant to preserve cash to navigate through the economic crises, he said. (godang)