KPC sees 2003 production flat

East Kalimantan-based coal mining giant Kaltim Prima Coal (KPC) said Wednesday that it planned to produce 17 million tons of coal in 2003, the same level with this year?s production.

?This year will be the first time KPC produces 17 million tons and we are stabilizing at this level,? said president Noke Kiroyan.

He said for next year, KPC has planned no capital investment to increase production capacity.

?KPC will review production process and do de-bottlenecking whenever necessary. That way we may be able to up production to 18 million the following year,? he said.

Noke also said KPC is in the process to introduce the third type of coal, Melawan, to supplement its current Prima and Pinang. Melawan coal quality will be lower than Prima and Pinang at around 5,300 cal. But Noke did not say when Melawan coal would be launched. ?KPC is still studying the possibility,? he said.

KPC, which operates huge coal mine in Sangatta, East Kutai, export almost all its product and is the biggest Indonesian coal exporter. The company sells 75 percent of its coal on long-term contract.

KPC is equally owned by global mining giant Rio Tinto and Anglo-American energy giant BP PLC. KPC is in the process of divesting 51 percent shares to state coal mining firm PT. Tambang Batubara Bukit Asam and companies controlled by East Kalimantan provincial and East Kutai regency administration. (alex)