Bumi seeks to almost double output by 2008

Indonesia's top coalmining house PT. Bumi Resources is looking to boost production from 40 million tons this year to over 70 million tons in 2008 with the opening of new mines, a company official said Monday.

Bumi?s Managing Director Ken Farrell when addressing CoalTrans conference said in 2008, its Kaltim Prima Coal (KPC) mine in East Kalimantan will produce 52 million tons in 2008 from 25 million tons this year. The growth, he said, will be coming from existing mining operations, a planned upgrade of crushing, washing, conveyor and port facilities and the introduction of new Bangalon mine operations.

Bumi?s Arutmin Indonesia is expected to ramp production from 18 million tons thie year to 20 million tons in 2008. The growth is projected mainly from Batu Licin and Mulia new mines, which commenced operations this year.

?By 2008, Bumi will account for approximately 40 percent of Indonesia?s anticipated coal production,? said Farrell.

?Bumi Resources? objective is to maintain its premier position in the Indonesian coal industry by expanding production from existing assets and acquiring further ?world class? assets to meet the growing demand for Indonesian coal; domestically and internationally,? he said.

Farrell said Bumi did not worry about market absorption and was confident that the planned addition would not create supply glut as demand forecast suggested continuing strong demand for thermal coal over coming years, especially with Asian coal consumers, whose dependency on imported coal is ever-increasing. ? These markets acknowledge their vulnerability and changing operating environment. Asian consumers readily see value in a reliable, alternative and geographically-blessed source of environmentally friendlier coal.?

Bumi estimates that demand for Indonesian coal could rise to as much as 160 MTPA by 2010 with exports continuing to account for more than 70 percent of that demand. (alex)