Indonesian 2003 coal production predicted at 112 million tons

Indonesian Coal Mining Association (ICMA) predicted on Thursday that the country?s coal production would be hovering between 108 to 122 million tons this year, or 10 around 10 percent higher than last year?s production of 101 million tons.

?Without new investment, most major coal minings had come to their peak production capacity,? said ICMA chairman Jeffrey Muljono.

Most major coal miners had set up their target slightly above 2002 production target. KPC is seeking 18 million tons in 2003, slightly higher than last year?s production of 17 million tons. Adaro sets its 2003 target at 21 million tons, 1 million higher than last year?s production, while Banpu sets 10 percent increase to 11.5 million tons.

The only miner that plans significant increase is Arutmin Indonesia, which will be producing 18 million tons this year, much higher than 2002 production of around 10 million tons.

Meanwhile, director of coal and mining enterprises Mahyudin Lubis said that despite robust demand for Indonesian coal, producers are reluctant to put new investment because they are faced with various regulation especially in taxation and uncertainty that make expansion uneconomic. (godang)