Medco Mining eyes 600,000 tons coal output this year

By Cepi Setiadi

Courtesy of Medco

IDX-listed energy company PT Medco Energi Internasional Tbk said that its indirect coal subsidiary PT Duta Tambang Rekayasa (DTR) is targeted to produce around 600,000 tons of coal this year from its concession in Nunukan, North Kalimantan.

F. Hary Kristiono, Corporate Strategic and Commercial Vice President at PT Medco Mining Internasional (MMI), said to Petromindo.com on Wednesday that the production volume target is triple the realized 2016 output of 150,000 tons. DTR resumed production in September after suspending it in January due to the weak coal price environment.

"But actually we have been trying to stabilize our coal output capacity at the level 600,000 tons per year, as we initially targeted in 2016 as well, but due to the coal market price we had to suspend our operation," he said. He explained that all of the coal output will be exported to India.

MMI, a subsidiary of Medco Energi, owns DTR, which is producing coal with calorific value of 6,500 kcal/kg GAR.

Editing by Reiner Simanjuntak