MHU to boost 2011 coal production

East Kalimantan coal mining firm PT Multi Harapan Utama (MHU) plans to increase its coal production to around 3 million tons next year from this year's target of 2-2.5 million tons.

Operations director Gatut Adisoma told Petromindo.Com on Tuesday that although the weather is not favorable until now, the company is still on track to produce around 2-2.5 million tons this year. ?Our production remains unaffected by the bad weather, only our transportation from the mine to port has been a little bit affected. Thus far, we don't have any plan to announce force majeure to our customers,? he said.

During the January-June period, MHU produced more than 1 million tons and sold the same amount of coal, he said.

In order to reach next year?s target, the company will start at a new production pit called ?Loa Kulu?, which is expected to produce around 1 million, he said.

In a June presentation, MHU said it was embarking on ambitious plan to quadruple production to 10 million tons in 2015 from 2.5 million tons currently. The production addition will come several new pits including Gitan, Teluk Dalam and Tanjung Lahung.

MHU is a coal contract of work holder operating near Samarinda. (denny)