Energy Lestari may miss production target

By Adianto P. Simamora

Courtesy of NG Group

South Kalimantan miner PT Pacific Energy Lestari, which is part of NG Group of Companies, said that it might miss the projected prodution target of 1 million tons this year from its coal concession in Kota Baru Regency, South Kalimantan province.

Biju N G, President Director of NG Group told Petromindo.com on Thursday that as of June, the company produced only around 200,000 tons.

?We may miss the target. Rain is one factor but we are also facing the problem in stripping ratio which is going to high. Our stripping ratio (SR) now is 11,? he said.

?With such high SR, the production cost and price of coal can?t match.?

Pacific Energy Lestari has a concession in South Kalimantan producing coal with the CV of 6000-7500 Kcal/kg. The company sells the coal to India and Thailand markets.

Editing by Alexander Ginting