PTBA optimistic output to grow 20%

By Thomas Sembiring

IDX-listed coal mining firm PT Bukit Asam Tbk (PTBA) expects production this year to remain higher than last year?s, although it would be lower than the initial projection amid the current global coal market downturn.

PTBA President Director Milawarma told Petromindo.com Thursday that he is optimistic coal output this year will increase by 20 percent from last year?s 18 million tons. The company initially targeted production to grow by about 25 percent this year, he added.

?We?ll still have higher production this year, although it would not be in line with target. ?It will still be around 20 percent,? Milawarma said.

Officials at the Ministry of Energy and Mineral Resources have said that many mining companies have revised downward their production target this year due to the current weak coal demand and oversupply situation, which have caused price of the commodity to further decline, undermining the country?s coal production target this year of 425 million as set by the government.

Editing by Reiner Simanjuntak