PKN?s coal production far below target

By Cepi Setiadi

Coal mining company PT Pesona Khatulistiwa Nusantara (PKN) said it will only produce around 2.8 million ton through the end of 2015 from its coal mine Kelubir and Sekayan, North Kalimantan.

Initially, the firm targeted to produce 6 million tons this year.

?The coal price in the market is going down. Our realistic production target is now around 2.8 million tons until the year?s end, far below of our initial target,? PKN?s President Director Jeffrey Mulyono said without elaborating the company?s output plan for 2016.

Last year, the firm produced 4.7 million tons. The firm initially set a high production target this year in anticipation of demand from a coal upgrading plant under construction by a Chinese company in Sekayan. The plant was expected to absorb 1.2 million tons per year. However, the plant has not been completed yet.

?The coal up grading plant hasn?t been ready yet,? Jeffrey said without elaborating the reasons.

Editing by Johannes Simbolon