MGM sees lower 2011 coal output

Central Kalimantan coal mining firm Marunda Grahaminerals (MGM) is likely not to meet its coal output target for this year due to heavy-equipment deficiency on the part of its mining contractor, the industrial source told Petromindo.Com.

The source said that recently the company has hired Indonesia?s second largest mining contractor PT Bukit Makmur Mandiri Utama (BUMA) as its mine contractor

The sources said as of early October, the company has produced 700,000 tonnes of semi-soft coking coal, out of the company?s revised target of 1.1 million tonnes for this year. ?I think, we can?t achieve this year?s production target given that current figure,? the source said.

Originally, MGM plans to produce 1.5 million tonnes of semi-soft coking coal this year but the government has revised it to just 1.1 million tonnes, the sources said.

Next year, the company is expecting to produce 1.5 million tonnes of semi-soft coking coal, the source said but the figure is not approved by the government yet.

MGM, which is located in North Barito regency, produces semi-soft coking coal and sells its entire production to export market. The company transports its coal along about 780 kilometers distance to Pulau Laut-based coal terminal Indonesia Bulk Terminal (IBT) in South Kalimantan.

MGM is the holder of the second generation Coal Contract of Work (CCoW). (denny)