Kideco to meet this year?s production target
Tuesday, June 18 2002 - 04:45 AM WIB
?We will be producing 5.5 million tons during the fisrt half of this year, and we should be able to produce another 6 million tons in the second half of this year as we are predicting good weather in the coming months,? Kideco?s managing director Kim Sung Kook told Petromindo.Com on a sideline of Coaltrans conference in Bali on Tuesday.
Kim said beside the good weather, Kideco also anticipate no labour dispute that could hamper production.
Kideco? said Kim, is facing the cost increase of 10 percent as a result of government regulation that requires coal contractors to pay international price for their fuel consumption. ?It really hit our bottomline, but we have taken some measures to cut our cost down,? he said. He did not elaborate further.
Kim also said Kideco anticipates better price for its coal starting the fourth quarter of this year. ?We see stronger demand for our coal in beginning the fourth quarter of the year that would increase our FOB price,? he said. Currently, the FOB price for Kideco?s subituminous coal is around US$20 to 21.
Kideco is one of Indonesia?s top coal producers, operating a coalmine in Pasir regency, East Kalimantan.The company, which is currently wholly owned by Sam Tan Co.Ltd of South Korea, plans to produce some 10 million tons of coal in 2001.
Kideco sells most of its coal to Korea, Taiwan, Slovenia, Japan and The Philippines. Domestically it sells coal to Indonesia Power. (alex)