Kideco says force majeure unlikely despite production cut

East Kalimantan coal producer PT. Kideco Jaya Agung said on Friday, heavy rain that hit the company?s mine area had cost the company some 40 percent production decline but said declaring force majeure to customers is unlikely since the company still has adequate coal in its stockpile.

?Heavy rain had cut production from the mine by 40 percent from 50,000 tons daily, but we expect the rain will subside in two weeks? time,? Binsar Marpaung, Kideco?s mine chief said.

Marpaung said except production cut from the company?s mine, other production facilities such hauling road remained intact, and production could be accelerated as soon as the water subsided.

Elsewhere, he said that during the first quarter of 2005, the company?s coal production reached 4.4 million tons, 65 percent of which went to export market such as Korea, Japan, India, Malaysia and Taiwan.

He said that the company aimed to produce similar volume in the second quarter.

The company plans to produce 18 million tons of coal in 2005 and had been fully contracted throughout the year. (dino)