MME revises downward coal production target next year

By Thomas Sembiring

South Sumatra coal mining firm PT Manambang Muara Enim (MME) has revised downward its coal production target for next year to around 1.2 million tons from the initial target of 2 million tons as coal transportation from the mine to the port remains a challenge.

?Our production next year will not be so large because transportation remains a challenge. So I revise the production figure for next year from earlier (projection of) 2 million tons to probably 1.2 million tons,? said MME Director Agustinus Thamarin to Petromindo.com on Wednesday.

MME, which is 60 percent owned by PT Alam Karya Nusantara and 40 percent by EGCO, owns around 1,584 hectares of concessions in Bangko Barat Regency, having coal reserves estimated at around 100 million tons with CV of 5,800 kcal/kg ADB.

Production so far has come from a single 200-ha pit. In the first nine months of this year, production reached 905,000 tons, compared to full-year target of 1.2 million tons.

MME sells its coal to power plants at home as it had stopped export in the past years due to the downturn of the global market.

Editing by Reiner Simanjuntak