PT BA told to boost production at Ombilin coal mine

The local government of the Sawahlunto municipality in West Sumatra has asked state owned coal mining producer PT Bukit Asam (BA) to boost the production of its Ombilin coal mine in the municipaity, Media Indonesia daily reported on Friday.

Sawahlunto?s mayor Amran Noor said at his office on Thursday that PT BA had not been serious with its production activity at the Ombilin coal mine as the company seemed to focus more on its operation at the Tanjung Enim coal mine in South Sumatra.

As a consequence, he said, the production of the Ombilin coal mine has continued to decline from year to year. ?At present, the production is only about 100,000 tons a year. Ideally, in order to reach market scale, the production should be increased to one million tons a year,? he said.

Amran said that PT BA had been given until December whether or not it agreed with the local government?s proposal to further expand the mining activities in the Ombilin mining site. ?If not, we will give the opportunity to other companies,? he said, adding that a number of companies have expressed interest to take over the operation of the Ombilin mine from PTBA. (*)