Mining contractor Pama expects higher output in 2005

Mining contractor PT Pamapersada Nusantara is targeting to produce around 35 million tons of coal and 282 bank cubic meter of overburden removal from its clients' coal mines in 2005, up from last year?s production of 29.4 million tons of coal and 201.6 million tons bcm overburden.

In a filling submitted to the Jakarta Stock Exchange on Wednesday, parent company PT United Tractors Tbk (UT) said Pama is expected to produce around 3.8 million tons of coal from its new mining projects in Kalimantan or lower from previously planned of 4.5 million tons.

UT said coal production from PT Kaltim Prima Coal?s Bendili mine is expected to reach 1.4 million tons by end of 2005. Meanwhile, another 2.4 million tons will be produced from Jembayan (PT Anugrah Bara Kaltim), Asam-asam (PT Arutmin) and Tanjung Alam (PT Timah) coal mines.

Pama is Indonesia?s largest mining services provider, held a 42 percent of mining contracts in the country last year. The company?s existing clients include PT Adaro Indonesia, PT Indominco Mandiri, PT Tambang Batubara Bukit Asam, PT Multi Harapan Utama, PT Dasa Eka Jasatama, and PT Kideco Jaya Agung.

UT also said coal mine contracts at Adaro and Indominco mines were currently contributing about 30 percent and 20 percent of Pama?s revenue, respectively. (Robert)