CNKO to produce 30 million tons of coal by 2017

IDX listed mining company PT Exploitasi Energi Indonesia Tbk (CNKO) has set a target to produce up to 39 million tons of coal by 2017 to meet surging demand from state electricity company PLN?s coal-fired power plants, Kontan reported on Thursday.

The company?s President Director Henry Sitanggang said in Jakarta on Wednesday that the company would further boost the coal production to be able to provide coal supply for PLN?s 26 coal-fired power plants.

At present the company supplied about 3.5 million tons of coal a year to PLN?s 14 coal-fired power plants, he said, adding that beginning September, the company would provide another 3.5 million tons to PLN?s two other plants.

Henry said that PLN?s 10 other coal-fired power plants which are now under construction would also receive coal supply from his company. ?We are still waiting for the completion of the power plants,? he added.

He said that in order to support the increase in the production, the company would upgrade the receiving capacity of its coal terminal in Tanah Laut, South Kalimantan from two million tons to five million tons a year.

Besides producing from its own coal mines, the company also bought coal from nearby coal mines to meet the surging demand from PLN, he said. (*)