Borneo says coal output far below target

By Cepi Setiadi

IDX-listed hard coking coal mining company PT Borneo Lumbung Energi & Metal Tbk said that production this year is estimated to only reach 800,000 tons, far below the 2.5 million tons target.

Production comes from subsidiary PT Asmin Koalindo Tuhup, which operates coal concession located in the Muara Raya Regency in Central Kalimantan Province, Indonesia.

Borneo's Director, Kenneth Raymond Allan told Petromindo.com on Monday that the output was far below the target due to the draught, which made the local Barito River impassable by barges.

?Hence, we couldn?t produce more coal since we could only haul it to the south through the river,? Allan said. In addition, according to him, the sluggish coal market has also been a factor causing the weak production.

In 2014, the company produced 2.1 million tons, lower than 3 million tons in 2013 and 4.2 million tons in 2012.

Editing by Reiner Simanjuntak