Govt mulls downward revision of coal output target

The Ministry of Energy and Mineral Resources is considering downward revision of the country?s coal production target of 425 million tons this year due to the lingering slowdown in the global economy which has undermined the price of the commodity.

Kontan quoted Adhi Wibowo, Director of Coal Management and Development at the ministry, as saying Wednesday that the ministry is currently reviewing the proposed changes into the 2015 work and budget plans (WB&P) of coal miners. ?Once the evaluation of the WB&Ps has been completed at the end of August, it can be seen whether the revision of production target is needed or not,? he said.

As have been previously reported, a number of miners have announced plans to revise downward their coal production target for this year.

Coal mining company PT Pesona Khatulistiwa Nusantara (PKN) has revised downward its production target from 5 million tons to 3.7 million tons this year from its concessions in Kelubir and Sekayan, North Kalimantan, its President Director Jeffrey Mulyono said last month. Jeffrey said the revision was made in the face of the continuously sluggish coal prices. ?Moreover, most of our clients (in India) are not able to absorb our production capacity,? he said.

Meanwhile, PT Reswara Minergi Hartama, a subsidiary of IDX-listed integrated energy company PT ABM Investama Tbk, has also revised downward this year?s coal output target from its concessions in Aceh to three million tons from five million tons due to the current low price environment. (*)