KPC says rain cut production by 15%

Rio Tinto Group's coal mining unit said production at its Indonesia mine fell as much as 15 percent a day this past week because heavy rain disrupted transport of the fuel.

Supply from Rio Tinto's 50 percent-owned company, PT Kaltim Prima Coal, which owns the biggest coal mine in East Kalimantan, Indonesia, is unlikely to be disrupted because commitments can be met from a stockpile, Susanto said.

``The especially heavy rainfall caused roads to be slippery and made it difficult for us to bring the coal out of the mine,'' said Bambang Susanto, director for external affairs at Kaltim Prima in Jakarta. ``Hopefully by next week, production will be back to the usual'' 45,000 to 50,000 metric tons a day.

Kaltim Prima sells thermal coal, used in power stations, to customers in Japan, Taiwan and the rest of Asia. Rio Tinto, the world's No. 2 mining company, and BP Amoco Plc equally own the company, which produces 14 million metric tons of coal a year from four open-pit mines in East Kalimantan.

This year, about 27 percent of Kaltim Prima's production will be shipped to Japan, 23 percent to Taiwan and 30 percent to the rest of Asia. The remaining 20 percent will be sold to Europe.

Rain in the past week has also caused some flooding in Sangatta town near the mines and led to the evacuation of some local residents, he said. (*)