MME to postpone coal expansion amid hauling obstacle

By Cepi Setiadi

Coal mining company PT Manambang Muara Enim (PT MME) has decided to postpone expansion plan at its coal mine in Muara Enim, South Sumatra due to hauling obstacle triggered by unfavorable provincial government policy.

The local administration has recently banned the use of public road for coal transport. Meanwhile, the alternative coal hauling road being developed has yet to be completed among others due to flooding.

?Hence, we now have no plan to expand due to hauling problem,? Irwan Tirtariyadi, president director of the company told Petromindo.com.

He added that until the alternative road is ready, the company is also still uncertain about what to do next year. ?We?ll just wait and see.?

Irwan said that for this year, the company can?t run production optimally. While, initially planned to produce 1.5 million tons this year, the company is likely to only produce 500,000 tons, all of which have been transported prior to the issuance of the local government ban on the use of public road for coal hauling.

Editing by Reiner Simanjuntak