Mandiri prepares to double coal production capacity

By Thomas Sembiring

Coal mining company PT Mandiri Intiperkasa, a unit of Mandiri Group, is making preparations to double coal production capacity probably next year if price starts to recover.

Herman Kasih, Corporate Director of Mandiri Group, told Petromindo.com on Wednesday that the company is currently preparing to obtain government approval for a revised environmental impact assessment (better known here as Amdal) to accommodate the planned increase in coal production capacity of 10 million tons per year.

Mandiri, which operates mines in Tarakan, North Kalimantan, currently has annual coal production of 5 million tons. The company plans to increase coal production from 4.5 million tons to 5 million tons this year, hoping price to start recovery in the second semester.

Herman said that the approval of the Amdal document is expected next year. ?We?re revising the Amdal toward 10 million tons (production capacity)?, he said.

He said that if coal price recovers to between US$60-80 per ton, the company is ready to double annual production to 10 million tons.

If price remains at current levels, the company will maintain its annual coal output at 5 million tons, he added.

Mandiri exports about 70 percent of its output to China and the rest to other Asian markets.

Editing by Reiner Simanjuntak