Media Djaya to boost 2015 coal output to 10m tons

Despite the government?s plan to start limiting the country?s coal production next year, IDX-listed integrated coal mining firm PT ABM Investama Tbk is optimistic that its indirect coal mining subsidiary PT Media Djaya Bersama could boost coal production at its concession in Aceh to 10 million tons in 2015.

Kontan quoted Tuesday Harry Asmar, President Director of PT Reswara Minergi Hartama, the parent of Media Djaya, as saying that he was optimistic that the Aceh provincial administration would support the production plan considering that the firm has recently completed the construction of various production facilities.

The central government plans to start limiting the country?s coal production next year in a bid to maintain reserves for future needs as well as help stabilize commodity price by assigning production quota to respective coal producing provinces, which would later distribute quota to each producers in the respective provinces. The government has set a production target of 425 million tons in 2015.

Harry said that Media Djaya will proposed the 2015 production plan to the Aceh provincial administration, under which the company will boost output to 10 million tons from the estimated 4 million tons this year.

Harry said that the company will start next month operating new production facilities including a new port with annual capacity of 15 million tons following a two-year construction of the project with total investment of US$150 million.

According to plan, the company hopes to start on September 30 coal shipment of 250,000 tons to India from the new port facility. ?We?re trying to continue increase production to optimize our production facilities and the new port,? Harry said. (*)