Mining firms told to increase production

Thursday, January 25 2007 - 01:21 AM WIB

The Ministry of Energy and Mineral Resources has asked three major mining companies -- PT Freeport Indonesia, PT Inco and PT Newmont Nusa Tenggara (NNT)-- to increase their production, Koran Tempo reported Thursday.

?The prices of gold, nickel, tin and coal have gone up,? the ministry's director of development coal and mineral business MS Marpaung said on Wednesday in Jakarta.

According to Marpaung, Freeport's average production has been 240,000 tons of concentrate per day, below its actual capacity of 300,000 tons per day.

?What is important is that the company's production must reach maximum capacity. If possible, it should reach 300,000 tons per year,? Marpaung said.

?We have already conveyed this to Freeport and it has agreed to increase the production,? Marpaung said.

Meanwhile, Freeport spokesman Mindo Pangaribuan said that the company always tries to increase the production and didn't know about the government's request to increase the production.

?I can't give a statement on the issues which we are discussing with the government,? he said. (*)

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