Govt yet to approve Adaro's production increase plan

The government has yet to approve plans by coal mining firm PT Adaro Indonesia to gradually increase its output to 24 million tons by 2003, according to director of coal at the Ministry of Mines and Energy Suyartono.

"We are still discussing it," he said.

Suyartono said that the Adaro output increase was expected to also boost the state revenue. He pointed out that the state revenue from Adaro in 1999 totaled US$21.09 million, in 2003 it was projected to increase to $52.24 million, and starting 2005, the revenue contribution would increase to 63.5 million per year.

A source at the ministry said that the government had basically agreed to the Adaro's output increase plan, but the company had been asked to redesign its environmental plans. (*)