Resource Alam to resume coal production at Loa Haur, Kaltim Mineral once price recovers

By Thomas Sembiring

IDX-listed PT Resource Alam Indonesia Tbk said that it would resume coal production at its Loa Haur and Kaltim Mineral concessions in Kalimantan once coal price has recovered.

Company Independent Commissioner Suria Martara Tjahaja told Petromindo.com via short messages that it would resume production activities at the two concessions if the coal price recovers to US$45 per ton.

?(Coal price) condition has yet to improve. There are no activities at Loa Haur and Kaltim Mineral right now,? he said.

Suria said that the company right now is focusing on efficiency measures in a bid to become a low cost coal producer to help survive the current coal industry downturn.

The 500-ha Loa Haur concession is located in Central Kalimantan containing coal with CV of 4,650-6,191 kcal/kg, while Kaltim Mineral concession, covering 10,000 ha, is located in East Kalimantan, with coal CV of 4,329-4560 kcal/kg.

Resource Alam has set coal production target of 4.2 million tons this year, a 31.25 percent increase compared to 3.2 million tons last year.

The company?s coal production this year will come from its subsidiary PT Insani Bara Perkasa, which operates mines in East Kalimantan, producing coal with CV of 4,500-5,000 kcal/kg.

The company?s markets include China, South Korea, Taiwan, the Philippines, India and Malaysia.

Editing by Reiner Simanjuntak