KPC confident to meet production target

Giant coal mining company Kaltim Prima Coal (KPC) expects production from August to December this year could be maintained at the level of 1.5 million tons per month to meet full year target, according to the company?s executive.

Bambang Susanto, the company?s government and external relations manager told petromindo.com over the week-end that favorable weather condition and conducive working environment would enable the company to meet its production target of 15 million tons this year.

?The signing of an agreement with four labour unions within KPC last month will hopefully eliminate strikes that in the past had significantly disrupt production,? he said.

According to the data from the ministry of energy and mineral resources, KPC had produced 7 million tons of coal during the first half of this year.

However, an industry analyst contacted by petromindo warned that there might be some potential disruptions in the future as divestment row with East Kalimantan government had yet to be solved.

According to the coal contract of work, KPC shareholders, Rio Tinto and BP Plc, have to divest 51 percent stake in KPC. East Kalimantan government is interested to acquire the stake but had not agreed to the price offered by Rio Tinto and BP.

KPC, the country?s second largest coal producer, operates a coal mine in East Kutai regency, East Kalimantan. (alex/godang)