Borneo?s AKT to resume coal production in April

By Cepi Setiadi

IDX-listed hard coking coal mining company PT Borneo Lumbung Energi & Metal Tbk said that its subsidiary PT Asmin Koalindo Tuhup is expected to resume production in April once it has completed talks with creditors over a voluntary debt postponement petition.

Borneo Director Kenneth Raymond Allan told Petromindo.com recently that AKT suspended production in March as it was in the process of completing the debt postponement petition (PKPU process) with the creditors.

The Central Jakarta Commercial Court approved on January 20 the debt postponement petition filed by AKT due to the lingering coal price drop.

?In January we were still producing coal, and stopped our production in March due to the process of PKPU,? Allan said. ?But we will resume production in April 2016 as we are still targeting to produce around 1.8 million tons this year.? Allan, however, stated that the company still has coal stocks of around 800,000 tons for supplying its existing clients this year. AKT among others owes debt to PT Kharisma Rekayasa Global and PT Samudra Pacific Marine, respectively US$14.7 million and $98.54 million.

AKT operates coal concession in Muara Raya Regency, Central Kalimantan. This portal reported last year, that AKT has been targeted to produce 1.8 million tons of coking coal this year, up from 800,000 tons last year.

Editing by Reiner Simanjuntak