PTBA coal output slightly decline due to falling train services

State-owned coal miner PT Tambang Batubara Bukit Asam (PTBA) said Tuesday its coal production has declined to 22,000 ton per day from 25,000 tons per day as railway company PT Kereta Api Indonesia (KAI) cut its train services to PTBA.

?Coal for domestic and export markets are not affected because we have a coal stock of one million tons in the beginning of this year,? PTBA corporate secretary Milawarma said, adding that negotiation with PTKAI is still continuing.

PTBA produced around 9.17 million tons of coal in 2005, or a 4.4 percent decrease compared to the 2004 production of 9.60 million tons. The company uses PTKAI?s services to transport its products to Kertapati jetty port and Tarahan port from its coal mines in Tanjung Enim.

PTKAI is proposing to increase train service fee to Rp 300 per ton/km. PTBA, however, rejected the proposal, saying they could only afford to pay Rp 230 per ton/km and Rp 200 per ton/km for the Tanjung Enim-Kertapati segment and the Tanjung Enim-Tarahan segment, respectively.

PTKAI has said it would suspend three train services for the Tanjung Enim-Kertapati segment and six train services for the Tanjung Enim-Tarahan segment. (godang)