Resource Alam to increase coal output next year

By Firmansyah Sembiring

IDX-listed coal mining firm PT Resource Alam Indonesia Tbk (KKGI) aims to increase coal production by 28.5 percent next year to 4.5 million tons from the estimated 3.5 million tons for this year.

KKGI President Director Pintarso Adijanto said on Monday that its Loa Haur coal mine in Central Kalimantan is expected to start production in the middle of next year.

To support the higher production target, the company plans to allocate US$1.5 million of capital expenditure next year.

He added that the higher demand from Japan will also become a catalyst for higher production next year. ?Last year we shipped one vessel (of coal), this year will be two vessels.? Pintarso said.

KKGI exports almost all of its coal production. Only about 0.1 percent of the production is allocated for the domestic market. ?We?ll keep on increasing output. The company will not only optimize its existing markets, but also will look for new markets as part of expansion,? Pintarso said.

In the first nine months of this year, KKGI produced 2.64 million tons of coal, while sales volume reached 2.63 million tons.

Editing by Reiner Simanjuntak