MUTU won?t meet output target due to bad weather
Wednesday, November 15 2017 - 02:07 AM WIB
Petromindo
Central Kalimantan coal firm PT Multi Tambangjaya Utama (MUTU), a subsidiary of IDX-listed PT Indika Energy Tbk, said it won?t be able to meet this year?s production target of 1 million tons primarily due to unseasonal heavy rainfall.
?It looks like production until end of this year won?t reach 1 million tons,? said Indika Director Azis Armand to Petromindo.com on Tuesday, bud did not say the expected production for this year.
A source within the company, however, said that realized output this year is likely to be around 500,000 tons.
Indika acquired MUTU in 2012, but only started production at the mine in the first quarter of this year due to the weak coal price environment in the past few years.
Indika acquired an indirect 85.0 percent equity interest in MUTU, a high-rank bituminous thermal and coking coal holding a third-generation CCoW based in Central Kalimantan, with a concession area of 24,970 hectares. Located approximately 30 km northeast of Ampah city and approximately 250 km north of Banjarmasin, MUTU has developed coal hauling roads with a capacity of 3.0 million tons per year and a barge port with a capacity of 5.0 million tons per year.
Editing by Reiner Simanjuntak