KPC, Asmin Bara revise upward coal output target

By Thomas Sembiring

Coal miners PT Kaltim Prima Coal (KPC) and PT Asmin Bara Bronang have proposed revision to their 2015 work and budget plans to the Ministry of Energy and Mineral Resources as they want to increase output than originally planned despite the current drop in the price of the commodity.

Director for Coal Management and Development at the ministry, Adhi Wibowo said late last week that the giant KPC has proposed for a higher production of 60 million tons compared to the original target of 52.5 million tons as the company has made investment in infrastructure facilities to accommodate for the higher output.

Meanwhile, Asmin Bara revised upward its coal output target this year to 3 million tons from 2 million tons, he added.

Adhi said that the ministry would approve the proposed higher production of the two miners, both holders of so-called PKP2B coal contracts of work, as long as the output is dedicated for the domestic market. ?We?re currently evaluating it,? he said.

Adhi said that despite the higher output, the ministry would not immediately revise the country?s coal production target this year of 425 million tons as other PKP2B holders have proposed for lower production in light of the lingering downturn in the global coal market.

Editing by Reiner Simanjuntak