KPC plans to produce 4.9 million tons of coal in 3rd quarter

Major coal producer PT Kaltim Prima Coal plans to produce about 4.9 million tons of coal in the third quarter of this year, or a slight increase from the actual production in the second quarter, the company has announced.

KPC?s spokesman Drajad Pangkawi told Petromindo.com on Friday that the company?s actual production reached 4.42 million tons in the April-June period or about five percent below the initial production target of 4.64 million tons.

In the first quarter of Jan-March, the actual production reached a total of 3.95 million tons or seven percent below the initial target of 4.26 million tons. "The total actual production for the first half of this year reached 8.37 million tons or six percent below the projected 8.91 million tons," he added.

KPC, which operates a large coal mining area in East Kalimantan, is equally owned by world mining giants Rio Tinto and BP. Under contracts of works awarded by the ministry of energy and mineral resources, the company?s shareholders are required to divest 51 percent of their shares to local investors. But the divestment has been delayed for several times due conflicts over the percentage of shares that must be sold to the local government. (godang)