E. Kalimantan to produce 170 million tonnes of coal in 2011

East Kalimantan province will continue to boost its coal production to 170 million tonnes in 2011, higher 10 million tonnes compared to last year?s production of 160 million tonnes, East Kalimantan?s head of mining and energy resources, Amrullah told Petromindo.Com.

The production targets for coal contract of work (CCoW) holders have been set at 140 million tonnes, while from the mining licenses (IUPs) at around 30 million tonnes for this year, he said.

The increasing coal output will come from some of IUP holders who have up-graded their status from exploration to operation and production stage. Also, PT Kaltim Prima Coal (KPC) has proposed to the local government of East Kutai regency, to give them the permit to increase its coal production from 47 million tonnes to 70 million tonnes in 2012.

East Kutai government is still evaluating the proposal but basically, they have approved the KPC plan, he said, adding that for next year, the province is targeting to increase its coal production by about 10 percent. (denny)