Oorja cuts 2012's output

By Er Audy Zandri

Indonesian coal miner PT Oorja Indonesia, a subsidiary of Indian giant shipping company Mercator Lines Limited (MLL), has stated it expects to deliver up to 7 million tons of coal this year, down from last year's record of around 7.5 million.

Though 7 million tons is still a big target, the company's President Director K S Raheja said to Petromindo.com that coal price drop has become one of the company's major concerns.

"Volume is down, and market is down by about 30 percent. Many mines in Indonesia are getting closed, so our concern is to survive. Our strategy is to operate at a lower stripping ratio and control our expenses," he said, adding that the company's average selling price is at US$40 per ton, not mentioning his operating cost.

Selling most of its coal to India, a very price sensitive market, Raheja believes that prices are certain to pick up.

"I think this is the bottom, I don't think India or China (GDP growth) can go any lower than this, you can't force people to stop eating or living a better life," he said.

Editing by David Mustakim