Gunungbayan cuts production outlook on heavy rain

East Kalimantan coal miner PT. Gunungbayan Pratamacoal said on Tuesday that its 2005 coal production would not be able to meet production target of 5 million tones due to heavy rainfall that hit the company?s mine.

?Production is significantly affected by the rain. From January to April this year, production was limited to 300,000 tones per month from the target of 400,000,? said Gunungbayan executive director Hengki Wibowo told Petromindo.Com.

Hengki said that during the first quarter Gunungbayan was forced to declare force majeur to one of its anchor customers to unavailability of coal.

Hengki said that the heavy rain would probably subside in June as dry season approaching. ?But even in dry season, we cannot up production because at that time Kedang Pahu river which is used to transport coal production by barge would have limited capacity due reduction of water depth,? he said.

He estimated that Gunungbayan production in 2005 would be similar to last year?s production of a little over 4 million tones.

Gunungbayan exports most of its coal production to Europe, Japan, Taiwan and Malaysia.

He added that the company is currently developing a new pit that would be able to add 500,000 tones per year production starting next year. (alex)