Indika to produce 34 million tons of coal this year
Wednesday, September 19 2012 - 01:12 AM WIB
IDX-listed Indika Energy, the country?s third-largest coal miner, expects to produce around 36 million metric tons this year from coal mines owned by the company?s subsidiaries, according to the company?s President Director Arsjad Rasjid
Arsjad said that the company would maintain high production level this year despite the decline in coal prices in the world?s market. ?We have to meet the production target in order to fulfill our contracts,? he told Petromindo.com
Meanwhile The Jakarta Post reported that Indika expected its new subsidiary PT Multi Tambangjaya Utama to start production in the first quarter of next year, with a capacity of one to two million tons a year.
The company was working on regulatory approval and infrastructure development, for Multi Tambangjaya to operate at maximum capacity.
Indika, through its subsidiary PT Indika Indonesia Resources, sealed a deal in February to acquire 85 percent of Multi Tambangjaya from Asia Thai Mining Co. Ltd. for US$132 million.
Indika also took over Multi Tambangjaya?s coal distribution license from International Coal Trading Ltd. in May.
Multi Tambangjaya now has 24,970 hectares concessions of bituminous thermal and coking coal in Barito Selatan, B?rito Timur and Barito Utara in Central Kalimantan. The company has total reserves of 75.2 million metric tons and coal reserves of 40.6 million metric tons.
Editing by Adianto P. Simamora