PKN expects coal output to be lower than target

By Thomas Sembiring

Coal mining firm PT Pesona Khatulistiwa Nusantara (PKN) said its coal production this year is expected to be only around 1.5 million tons, lower than the initial target of 2 million tons.

?It (production) will not reach 2 million tons. Probably it would only be around 1.5 million tons,? said President Director of PKN Jeffrey Mulyono to petromindo.com on Tuesday.

He said that although coal price has started to improve in recent months, demand remains weak.

He said that much of the company?s low rank coal output from its mines in Sekayan, Bulungan Regency, North Kalimantan, are exported to India. He said that the Southeast Asian markets provide limited export opportunity for the company given its coal quality condition.

Earlier this month, this portal reported that PKN?s coal output in the first semester of this year only reached 594,790 tons, well below the half-year target of 1 million tons.

Editing by Reiner Simanjuntak