PKN revises downward 2011 coal output

PT Pesona Khatulistiwa Nusantara (PKN), a unit of coal firm PT Bhakti Energi Persada (BEP) is targeting to produce 1.5 million tonnes of low-rank coal this year, lower compared to earlier target of 1.9 million tonnes.

The government has asked for lower coal output for this year from PKN, the company?s official told Petromindo.Com

As of August, PKN has produced 900,000 tonnes, the source said. At present, majority of its coal is going to India and China.

PKN expects to produce 3 million tonnes of coal in 2012 and around 2.5 million tonnes of the total has been contracted. The remainder 500,000 tonnes is still open for any interested buyers, the source said.

PKN started its commercial coal production in September 2009.

PKN had said last year it would open a new pit called ?Sekayan?, which has reserve of about 100 MT, to boost its coal production. The new pit is located near Kayan river in Bulungan regency in East Kalimantan.

BEP is the holding company of seven coal mining companies, which are all located in Muara Wahau district. The firm's coal has a calorific value of 5,200 kcal/kg (ADB) or 3,400 kcal/kg (AR). The mines have a combined low-rank coal reserves of 5.7 billion tonnes. (denny)