Medco to resume coal production if price exceeds $50

By Thomas Sembiring

Coal mining firm PT Medco Energi Mining Internasional (MEMI), a subsidiary of IDX-listed energy company PT Medco Energi Internasional Tbk, will resume production at its coal mine in Nunukan, North Kalimantan, only if price of the commodity recovers to beyond US$50 per ton.

Medco Energi Internasional President Director Hilmi Panigoro told petromindo.com recently that resuming the Nunukan coal mine operation will depend on sustainable recovery in the price of coal and whether the company can obtain buyer.

He added that while Medco has been engaged in discussions with several potential buyers, the company for now does not have specific plan as to when it will resume production at the Nunukan coal mine.

MEMI suspended late last year the Nunukan coal mine operation due to tumbling coal price. Last year, the Nunukan mine, run by subsidiary PT Duta Tambang Rekayasa, only produced 350,000 tons of coal, out of the target of 600,000 tons.

Editing by Reiner Simanjuntak