Borneo Lumbung to double coal output this year

By Cepi Setiadi

Petromindo

IDX-listed hard coking coal mining company, PT Borneo Lumbung Energi & Metal Tbk is targeting to produce 2.5 million tons in 2017.

Borneo's Director, Kenneth Raymond Allan told Petromindo.com on Monday that this target is a 150 percent jump compared to the realized output of only around 1 million tons last year.

"We are doubling our coal put target as we have a potential new client from India this, although we are still in talks to have a long term contract of coal sales," he said, adding that the coal produced by Borneo have been absorbed by several markets such as Japan, China, Turkey, Vietnam and Taiwan.

"Starting this year we might have a new client, a big company from India, that's why we are doubling our output target," he said, adding that for coal sales volume this year the company is targeting around 3 million tons.

"We put a higher coal sales target than the production target as we still have coal stocks," he explained, without elaborating on the stock volume.

Borneo produces coking coal through subsidiary PT Asmin Koalindo Tuhup (AKT). AKT operates coal concession in Muara Raya Regency, Central Kalimantan. Last year Borneo produced 1,040,000 tons of coal compared to initial production target of 1.8 million tons.

Editing by Reiner Simanjuntak