Ministry limits PKN?s 2017 coal output at 3m tons

Petromindo|Lucky

The Ministry of Energy and Mineral Resources has assigned coal output volume of 3 million tons for North Kalimantan coal mining firm PT Pesona Khatulistiwa Nusantara (PKN) this year, much lower than the 5.5 million tons initially proposed by the company, Kontan reported on Friday.

The paper quoted PKN President Director Jeffrey Mulyono as saying that the company will seek for upward revision of the coal production target mid-this year convinced that coal demand will increase and that the company has a capacity to actually produce up to 6 million tons. ?It has been approved for 3 million tons, but there is still opportunity to increase it in June 2017,? he said. The company produced 1.25 million tons last year.

Jeffrey said that the company will aggressively find new buyers for its coal including in China and India. Late last year, the company obtained coal supply contracts of 2.8 million tons for delivery this year, about 1 million tons of which will be supplied to Pulau Obi coal-fired power plant in North Maluku Province.

Director General of Mineral and Coal at the ministry Bambang Gatot Ariyono said recently that the country?s coal production this year may reach 489 million tons, exceeding the initial 413 million tons target set by the government as thousands of smaller IUP coal miners start production this year and existing miners seek to increase output in the wake of recent price recovery. He said that the ministry will try to limit the output so as not to be far above the production target. (*)