PTBA upbeat it will be able to produce 9.6 million tons of coal this year

State owned coal mining company PT Tambang Batubara Bukit Asam (PTBA) Ismet Harmaini said that he was optimistic that the Tanjung Enim, South Sumatra based coal producer would be able to meet its target to produce 9.6 million tons of coal this year, Neraca reported on Thursday.

Ismet said in Jakarta on Wednesday that based on the performance during the first quarter it was quite possible for PTBA to meet the production target and to book profit of about Rp 250 billion (US$=Rp8,900) in 2003. "With production of about 9.6 million tons, it is possible for the company to meet the targeted profit," he added.

He said that his optimistic view was also based on the fact that the cooperation with state owned railway operator PT Kereta Api Indonesia (KAI) on the transportation of the company?s coal from its mining site to Tarahan coal terminal in Panjang, Lampung had run smoothly as expected.

According to him, the Suralaya power plant in Merak, Banten remains the main buyer which buys between 60 percent and 70 percent of the company?s production. The other 30 percent of the total production are exported.

In 2002, PT BA?s sales revenues dropped by 2.25 percent to Rp 2.16 trillion from Rp 2.22 trillion in 2001. The decline resulted in the decline in profit by 34.62 percent from Rp 272.22 billion in 2001 to Rp 177.95 billion in 2002.

Ismet also said that PTBA would cooperate with China National Technology Import-Export Corporation (CNTIC) to develop the Ombilin coal mining site in West Sumatra. This mining are is estimated to contain about 100 million coal reserves. (*)