PKN to boost coal output if price is ?good?

By Thomas Sembiring

North Kalimantan coal miner PT Pesona Khatulistiwa Nusantara (PKN) said it would boost coal output to around 2.5 million tons next year if the price of its coal is ?good.?

?To date, we have contracts for 1.8 (million tons). We?re still looking, if the price is good, the capacity of our equipment can reach around 2.5 million tons,? said PKN President Director Jeffrey Mulyono to Petromindo.com on Monday.

He said that price is considered good if the price of its coal with calorific value of 3,100 kcal/kg can reach at least US$20 per ton.

PKN plans to produce 1.2 million-1.3 million tons of coal this year, down from the original target of 2 million tons.

Meanwhile, Jeffrey said that its pit in Kelubir, Bulungan, North Kalimantan Province, will supply about 1 million tons per year to a smelter owned by the Harita Group in Pulau Obi, North Maluku,

He said that the supply is expected to start next year under a multi-year agreement with Harita.

Elsewhere, Jeffrey said that the company plans to allocate US$1 million for capital expenditure next year, mostly for land acquisition.

Editing by Reiner Simanjuntak