Harum to produce 12.5 million tons of coal, this year

By Hisky Darmayana

PT Harum Energy Tbk plans to produce about 12.5 million tons coal this year from the company?s coal concessions in East Kalimantan, the company?s President Director Ray Gunara said.

Ray said that about 10 million tons of the total production would come from the Mahakam Sumber Jaya (MSJ) mine and another 2.5 million tons from the Santan Batubara mine.

The company plans to sell between 13 million tons and 14 million tons to international and local markets. ?Besides from our own production, we will procure coal from traders to meet sales target,? he told Petromindo.com

Harum exports about 90 percent of its coal production mainly to South Korea and Taiwan, while the remaining 10 percent will be sold to the local market.

Meanwhile, The Jakarta Post reported that Harum planned to acquire more mining sites in East Kalimantan in an attempt to secure more reserves to increase production.

Ray said that his company expected to complete the acquisition of a coal mining site by the year?s end. ?We are seeking many sites, of course. However, we have to be realistic and be more careful in the current market situation,? he said.

Harum?s total production reached 6.1 million tons in the first half of the year, increasing by 39.5 percent compared to 4.4 million tons in the same period a year earlier. Meanwhile, sales volume reached 7.4 million tons, up 62 percent from 4.6 million in the same period last year.

Editing by Adianto P. Simamora