MGM misses coal production target due to climate problem

Central Kalimantan-based coal mining firm PT Marunda GrahaMineral (MGM) produced around 453,571 tons of coal last year, much lower than the target of one million tons, due to climate problems.

In a presentation material made available to Petromindo.Com, MGM said that the unpredictable local climate posed difficulties for the firm in using barges to transport its coal down the Barito river.

?The barges can not pass through the river during dry season. However, high rainfall will make the barges unable pass through the Muara Teweh bridge,? MGM explained, adding that stones in some locations of the river blocked the movement of the barges that carried its coal.

MGM?s mining concession is located in a remote area of Laung Tuhup district, Murung Raya regency. The company transports its coal for about 780 kilometers to coal port Indonesia Bulk Terminal (IBT) in South Kalimantan.

MGM transported about 235,447 tons of coal to IBT last year, of which around 191,266 tons were sold to Japan, France and Italy.

The company plans to produce around 1.2 million tons and target to sell around one million tons of coal this year.

MGM said it would deploy more barges and clean the river of stones that block the movement of the barges. (godang)