PT BA fails to reach production target

State owned coal mining company PT Batubara Bukit Asam (PT BA) has failed to meet its production target in 2005 due to a problem in the transportation of the coal from its mining site in South Sumatra to its shipment terminal in Tarahan, Lampung, Sumatra Express reported on Tuesday.

President director of PTBA Ismet Harmaini said in the company's office in Muara Enim, South Sumatra on Monday that the company was able only to produce about 9.1 million tons of coal in 2005, or about 91 percent of the 10.5 million tons targeted for 2005.

According to him, the company, which transports its coal to Tarahan terminal through the Lampung-Palembang railway system before being shipped to both local and overseas buyers, has often faced problem in the transportation of the coal due to the bad condition of the railway track.

He said that as the consequence, the company was only able to transport about 9.1 million tons of coal to the Tarahan terminal, or much lower than its initial target of 9.9 million tons.

Ismet, however, said that the company's sales revenue rose by 35 percent despite the failure to meet the target thanks to the surge in the prices of coal both at home in the overseas markets. (*)