Harum plans lower coal production this year amid falling price

IDX-listed coal miner PT Harum Energy Tbk plans to revise downward its coal production target this year due to continuing decline in coal price, Kontan reported on Thursday.

The paper quoted a company statement as saying that Harum was considering to revise downward production at its subsidiary PT Mahakam Sumber Jaya to 650,000 per month from the initial target of 830,000 tons, and for another subsidiary PT Santan Batubara to 80,000 tons per month from 120,000 tons target.

If the lower production plan is realized, Harum will only produce 8.76 million tons of coal this year, down from the original target of 11.88 million tons.

Harum said that the Newcastle coal price as of Tuesday has declined by more than 12 percent to US$73.55 per ton from end of 2013 level of $84.20 per ton.

But Harum said that the company would accelerate production if the coal price recovers to meet the original production target. (*)