Govt turns down TAJ plan to boost coal production
Thursday, May 12 2005 - 06:50 AM WIB
The government has declined PT Tanjung Alam Jaya (TAJ)?s plan to increase its coal production from 252,289 tons last year (Apr-Dec period) to one million tons this year, a government official said Thursday.
?There is some uncertainty about their ability to increase production drastically,? director general secretary R. Sukhyar told Petromindo.Com.
Sukhar said TAJ should take to consider the rain season, on which mining activities could get more difficult. ?The company is too optimistic,? he added.
TAJ, a subsidiary of state-owned tin mining company PT Timah Tbk, operates a 9,721-hectare coal mine in Banjar regency, South Kalimantan, which has mineable reserves of around 10 million tons.
TAJ has signed contracts to sell around 300,000 tons of coal with South Korean firm LG, Japan trading house Mitsubishi, and trader Noble Energy. All are for 2005 shipments. (godang)