Kideco targets 34m tons

By Er Audy Zandri

First generation CCoW holder Kideco Jaya Agung has stated to target up to 34 million tons of coal output this year from its mine in Batu Kajang East Kalimantan, up from its last year's target of 32 million tons.

"We managed to meet our target last year, so we're quite optimistic," said Kideco Head of Mining Technique Arief Pambudi to Petromindo.com.

The Batu Kajang site consists of up to 50,000 hectares of concession area, with contractors like Pama Persada, Buma, Petrosea and local contractor Bima as well as Kideco sister company Simms doing coal mining works.

"If all contractors are listed, we have up to 150 contractors big and small working on our site under my supervision," he said.

Kideco's coal has cv of between 4,600 and 4,800 kcal/kg, with its largest market being Japan, China and Taiwan.

"Up to 24 percent of our total output goes to domestic market under the DMO obligation, but the number is varied from year to year," he said, adding that this year's average selling price should be higher than last year's US$80 per ton.

The concession holds around 700 million tons of proven reserve with 7 percent stripping ratio.

The company expects to ramp-up production to 36 million tons in 2013.

Editing by David Mustakim