Pan Indo sets 1.2m tons coal production target this year

By Hiski Darmayana

Coal mining company PT Pan Indo Resources has set a higher production target of 1.2 million tons for this year from its concession in Muara Jawa, Kutai Kartanegara Regency, East Kalimantan.

Most of the output would be exported to China and South Korea. "Only about 20-30 percent will be sold in the domestic market," company Director Herman Salim told Petromindo.com over the weekend.

Last year, the company produced 850,000 tons of coal. The lower output was because the Muara Jawa concession only began production in April year.

He added that last year's output were mostly sold to China and India. This year, there is no more demand from customers in India following the sharp drop in the country's currency against the US dollar. "As a result, they're reducing coal import from Indonesia," Herman said.

Editing by Reiner Simanjuntak