Permata Resources cutting down coal production

By Cepi Setiadi

Indonesian Coal producer PT Permata Resources Group, the subsidiary of PT Permata Prima Sakti Tbk, is cutting down its coal production to keep pace with falling price and unfavorable weather conditions.

"We are cutting down production due to the bearish situation in the coal market and the rainy season," Aris Munandar, Director of Permata Prima Sakti, told Petromindo.com on Wednesday.

The company produced about 2.2 million tons of coal from its concession in South Kalimantan and Sumatra in the first semester of this year, as compared with the annual target of of 4.5 million tons.

Aris said the outlook of Indonesian coal with high caloric value is not good due to its high production cost and low selling prices. Furthermore, it has to compete with coal from Australia, South Africa and China. "And this phenomenon will result in the imbalance of supply and demand," he said.

Editing by Johannes Simbolon