Medco still on track to meet coal output target despite weaker price

By Cepi Setiadi

Coal mining company PT Medco Energi Mining International claimed that coal production from its concession in Nunukan, North Kalimantan, run by subsidiary PT Duta Tambang Rekayasa, is still on track to meet full-year target despite worsening coal price.

CEO of Medco Energi Mining, Arie Prabowo Ariotedjo told Petromindo.com recently that as of May 20, 2015, production has reached 232,000 tons, compared to the full-year target of 600,000 tons. The concession produces 6500 GAR coal calorific value with 3.5% sulfur.

?By the end of this month we expect to produce 250,000 tons, so it is still within our target,? he said. Arie revealed that so far the company has sold about 190,000 tons which were destined to India and Bangladesh.

?But currently we are holding our sales for a while as the coal price is getting worse,? he said, adding that the market is currently flooded by coal from the US and South Africa. Hence, coal from Indonesia is considered more expensive than coal from both countries.

?So we hold one vessel for this month while observing the situation, but hopefully in this week we will close deal for sales either to India or to Bangladesh, depending on which one is more interesting,? he said, adding that India market is currently in bearish mode.

Editing by Reiner Simanjuntak