Pesona Khatulistiwa to double coal output next year

East Kalimantan low-rank coal producer PT Pesona Khatulistiwa Nusantara (PKN) said it would produce 2 million tons (MT) of coal next year, more than double compared to this year?s revised target of 700,000 tons, the company?s official said.

Marketing Manager Joy W. Sugoto told Petromindo.com on Wednesday that this year?s target would be lower compared to initial target at 1 MT due to weather condition.

To boost its coal production, PKN will open new pit called ?Sekayan? located near Kayan river in Bulungan regency. The pit has reserves around 100 MT and is expected to start production early next year.

All the coal for this year has been contracted to Chinese, India and Philippine buyers, he said.

?We signed one year contract with a quantity 700,000 tons to southern part of China, with option to supply up to 1.2 MT. The contract was started since March this year,? he said.

By the end of July, PKN has shipped around 200,000 tons, he said.

For next year, all production has been contracted to China, India and some to Philippine. Next year, we have supply commitment to India with volume of around 700,000 tons, he said without giving the clients? names. Chinese buyers have also commitment to extend current contract, he added.

PKN is a unit of PT Bhakti Energi Persada (BEP). BEP has other three subsidiaries, namely Persada Multi Bara (PMB), Bumi Murau Coal (BMC) and Telen Eco Coal (TEC), which have total low-ranked coal reserves of 5.7 billion tons.

BEP is controlled by businessman TP Rachmat, who is also a controlling shareholder at IDX-listed coal giant PT. Adaro Energy, and his long-time business partner Benny Subianto.

According to Joy, the group will produce totalled of 8 MT of coal in 2012, which PKN will produce 4 MT and the remaining will come from other three units.

Any potential buyers are welcome for 2012 coal production, he said.

Interested buyer could contact Joy Sugoto, Graha Irama 6th Floor Unit E, Jl HR Rasuna Said, Jakarta. Phone: +62-21-521-3711/12, Fax: +62-21-526-1217, Email: joysugoto@bepcoal.com. (denny)