Resources Alam revises downward coal production target

By Brigida Ernestina Elu Wea

IDX-listed coal mining firm PT Resources Alam Indonesia Tbk has revised downward coal production target for this year to around 3 million tons from initial estimate of 4.2 million tons despite recent signs of recovery in the price of the commodity.

Company Commissioner Suria Martara Tjahja told petromindo.com Wednesday that coal price remains weak, suggesting that the firm is yet to be convinced that rising price in recent months would lead toward sustainable price recovery.

He reiterated that given the weak price environment, the company has yet to resume coal production at its two subsidiaries PT Loa Haur (with coal mines in Central Kalimantan), and PT Kaltim Mineral (in East Kalimantan).

He said that production this year would solely come from another subsidiary PT Insani Baraperkasa, which operates mines in East Kalimantan, producing coal with CV of 4,500-5,000 kcal/kg.

?Current price environment remains uneconomical for us (to resume production at the two subsidiaries),? Suria said. ?The Tani Bakti Block will be our sole (source of) production because the coal is more commercially viable (to produce) and there are significant development there,? he added.

Resources Alam in the first half of this year produced 2 million tons of coal. Last year, realized production was 3.2 million tons.

Editing by Reiner Simanjuntak