PKN to boost coal output by nearly 60 percent to 3 Mln T in 2012

PT Pesona Khatulistiwa Nusantara (PKN), a unit of coal firm PT Bhakti Energi Persada (BEP), plans to boost its coal production by nearly 60 percent in 2012 to tap growing demand from China and India, a company executive said on Tuesday, and it has contracted all next year?s production.

PKN expects to produce 3 million tons of coal in 2012, a 57.8 percent increase from a planned 1.9 million tons this year, said Jeffrey Mulyono, BEP?s president director on the sidelines of Coaltrans Asia conference.

?The coal will be shipped mostly to Chinese and Indian buyers,? said Mulyono without giving details on the volume for each buyer.

In 2010, PKN produced 1.2 million tons of low-rank coal which is typically has high moisture and low heating value.

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

BEP has three other subsidiaries, Persada Multi Bara (PMB), Bumi Murau Coal (BMC) and Telen Eco Coal (TEC), which have a combined low-rank 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. (Denny)