JPC halves production target
Wednesday, March 6 2013 - 02:31 AM WIB
Jambi coal miner PT Jambi Prima Coal (JPC), a coal unit of IDX-listed PT Renuka Coalindo, will only produce half of its original target of 600,000 tons of low rank coal from its concession in Mandiangin sub-district of Sarolangun regency for financial year March 2012- April 2013.
As of February 2013, JPC has produced around 250,000 tons of coal. The significant decrease in production volume is mainly attributed to the current unfavorable price condition combined with incomplete infrastructure at the mine, a company official told Petromindo.Com.
JPC appointed PT Bangun Karya Pratama Lestari in March 2012 to replace PT Makmur Tirta Coal Mandiri as a mine contractor, but there has been no significant coal production volume yet from the mine.
For next financial year, the company is targeting to produce around 1 million tons of coal as the company has a new contractor, the source said.
In September 2012's statement, JPC's JORC analysis revealed 120.3 million tons of coal resource and 92.6 million tons of reserve, enough to sustain up to 18 years of mine life at the production rate of 5 million tons per annum after 3 years of production ramp up from the current rate. PT GMT Indonesia issued the JORC reserve analysis.
Editing by Reiner Siamnjuntak