MHU sees production decline on contractor change

East Kalimantan coal miner PT.Multi Harapan Utama (MHU) sees its 2007 production to decline to 1.25 million tonnes from 1.5 MT last year, a company official said on Friday.

Obang Suwandi, MHU?s senior official told Petromindo.Com Friday that the decrease would be mainly due to change of the mine?s contractor from Pamapersada Nusantara to Australian mining contractor Leighton Group.

Leighton will start work at the mine July 1, 2007, Obang said.

Leighton has won two-year contract to carry out mining works at MHU. The contract involves land clearing, drill and blast, load and haul of overburden, coal mining and haulage of coal to port.

MHU exports most of its coal production.(godang)