Pan Indo to start coal production next month

By Hiski Darmayana

PT Pan Indo Resources plans to start coal production in April of this year from its concession in Muara Jawa, Kutai Kartanegara Regency, East Kalimantan.

?The initial production capacity will be 25,000 tons, which we plan to double to 50,000 tons in the second month, and a target of 1 million tons by the end of the year,? Director Herman Salim told Petromindo.com Monday.

Herman said the company will export its coal output to India and China. ?But the initial production in April will be entirely sold in the domestic market first particularly to traders,? he said. Once production capacity increases, the company will export about 90 percent of the output, he said.

Pan Indo was initially engaged in coal trading business, which turned into coal mining in 2011.

Editing by Reiner Simanjuntak