Productions stoppage costs KPC 74,000 tpd

IDX-listed coal mining house PT.Bumi Resources estimates to suffer production loss of 74,000 tonnes per day after East Kalimantan regency administration ordered partial production stoppage the mining pits operated by its subsidiary PT.Kaltim Prima Coal (KPC).

The company revealed in an analyst presentation posted at the Indonesian Stock Exchange on Friday that under the worst case scenario, KPC?s Melawan Khayal, Belut and Beruang pits operated by Thiess Contractors Suffered production loss of 39,000 tonnes per day. Pelikan and Macan pits operated by PT.Pama Persada Nusantara suffered 16,000 tpd, while Bengalon coal hauling operated by PT.Darma Henwa suffered 19,000tpd.

The company, however, said that as per Augsut 21, 2008, Bengalon coal hauling has been back in operations.

Local government backed by local police has ordered production and hauling stoppage at some of KPC?s mining area since August 8, 2008, on the ground that some of the company?s mine are located in forestry area.

Bumi said KPC would compensate production loss by intensifying mining at other pits.

Bumi CEO Ari Hudaya told Petromindo.Com on Friday that thus far, the company has no intention to declare force majeure to its customers as KPC is still able to meet its obligations.(godang/alex)