PTBA set to increase 2004 coal production

JSX-listed state coal mining firm PT.Tambang Batubara Bukit Asam (PTBA) expects 2004 production to increase around 10 percent to 11 million tons due to improved transportation infrastructure, a company official said.

PTBA corporate secretary Milawarma said on Wednesday that state railway company PT.Kereta Api Indonesia (KAI) which transported most of the company?s coal production to Kertapati coal terminal in South Sumatra and to Tarahan terminal in Lampung had been able to improve transportation capacity.

Milawarma said this year?s production is expected to reach 10 million tons, relatively unchanged compared to last year. ?Up to October, PTBA had produced 8 million tons of coal,? said Milawarma.

He added that by the end of this year, works to deepen Tarahan coalport would be completed, enabling the port to directly service panamax size vessels.

PTBA had been main supplier of 3,400-MW Suralaya power plant in Banten province under long-term contract and sells 83 percent of its product domestically.

Milawarma said next year it would try to sell production addition to export market. ?We have a lot of request from overseas buyers, but we can?t fulfill the demand due to limited transportation capacity. ?PTBA can easily double production to 20 million tons per annum if we have transportation means,? said Milawarma.

PTBA is trying to solve transportation problems by studying possibility to build 140-km canal from its Tanjung Enim mine to Musi River and then transported by barge to loading port in Tanjung Api-Api in South Sumatra or to Bangka channel with capacity of 20 MTPA. (arry)