Darma Henwa seeks to boost coal production, overburden

Indonesia listed mining service contractor PT Darma Henwa Tbk (DH) plans to boost coal production from its two projects in PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia to a total of 10.4 million tonnes this year, from 6.7 million tonnes in the same period of last year, the company?s official said on Friday.

COO Masruri Yahya said that DH expects to produce 4.1 million tonnes at Arutmin?s Asam-Asam block this year, up from 2.2 million tonnes in 2010; and 6.3 million tonnes of coal at KPC?s Bengalon block, compared to last year?s production of 4.5 million tonnes.

The company is also expecting to rise its overburden target for this year to 18-30 million bcm in Asam-Asam block and around 65-69 million bcm in Bengalon block. As of march 2011, the company?s overburden reached 21 million bcm, up 66% compared to the same period last year, he said.

Masruri added that coal production in Asam-asam has already reached 99 percent, but production in Bengalon has only reached about 54% of the company?s target.

Coal production at Bengalon is still far below target due to the lack of heavy-equipment. The firm has reduced the strength of its heavy equipment fleet from 13 units to only 8 as part of efficiency program, Masruri said.

The company has also cut the number of its employees from 1,400 to 1,100 in 2010.

The company is targeting to spend around US$50 million this year.

The company also intends to lease heavy-equipment for operation. ?At the present, we are talking with several coal miners to lease our heavy equipment,? he said without giving the name of the coal miners. (giok)