KPC sees lower coal output this year due to weather condition

Indonesia?s largest coal miner PT Kaltim Prima Coal (KPC) has reported that this year?s coal production might be lower compared to its initial target due to unfavorable weather condition and several demonstrations within its mining area.

The company?s external relation, Hasrul Sani as quoted by local media on Thursday said that as of today (Dec 29), KPC has produced 41 million tonnes of coal.

?Higher rainfall and some demonstration including Thiess? workers demonstration at KPC?s mining operation in Sangatta, make KPC production can not meet the target for this year,? he said.

Earlier, KPC?s official told Petromindo.Com that it is planning to produce 54 million tonnes of coal in next year, increased from this year?s target of 43 million tonnes.

In Sept, Bumi Plc reported that KPC is set to produce 70 million tonnes in 2014 from around 40 million tonnes targeted this year. Production increase will be achieved through development of various infrastructures such as overland conveyors, stacker reclaimer and barge loading facility, development of second shiploader and acquisition of mobile equipments.

Bumi plc, whose shares ownership is controlled by the powerful Bakrie family controls the three mines through its 29.2 percent shares of IDX-listed firm PT Bumi Resources Tbk, which is parent company of Katim Prima Coal and Arutmin Indonesia and 85 percent stake at another IDX-listed firm PT Berau Coal Energy Tbk, which is a parent company of Berau Coal. (*)