PTBA to increase coal briquette output

State Minister of State Enterprises Sugiharto has asked state coal miner PT Tambang Batubara Bukit Asam (PTBA) to boost its production capacity by 10 times within the next 3-5 years period.

The higher capacity would increase production from the current level of 115,000 metric tons per year to 1.3 million metric tons per year to help provide alternative source of energy for household consumptions.

To increase output PTBA will expand its coal briquette plant in Serang, Banten, which is expected to be completed by 2007. Second expansion in Semarang will be finished by end of 2008, and third expansion in Gresik to be completed in December 2009. The three plants each has a production capacity of 500,000 tons per year.

Sugiharto said on Friday that the company would need some Rp 519 billion in cash to finance the expansion programs.(dino)