Borneo says it won?t achieve Q1 coal output target

By Cepi Setiadi

Petromindo|Khalsa

IDX-listed hard coking coal mining company PT Borneo Lumbung Energi & Metal Tbk said it would not achieve its coal production target in the first quarter (Q1) of this year due to heavy rainfall and flood at the mine site.

"This year we are targeting around 2.5 million tons of coal output, and in the first quarter of this year we (initially) set a target of around 500,000 tons, but we might be able to only produce around 350,000 tons up to March 2017 or the first quarter," he said to Petromindo.com on Wednesday.

He said that in January and February of this year, the company was only able to produce 125,000 tons due to the bad weather condition. However, the company was able to export more than 400,000 tons in the first two month of this year by using the stock file of its coal.

Borneo produces coking coal, used in steel production, through its subsidiary PT Asmin Koalindo Tuhup, which has coal concession located in the Muara Raya Regency in Central Kalimantan Province.

Editing by Reiner Simanjuntak