Resources Alam says coal production depends on price

IDX-listed PT Resources Alam Indonesia Tbk said that coal production in the first half of this year totaled 2 million tons, nearly half of the full-year target of 4.2 million tons.

Last year, the company produced 3.2 million tons. Company Commissioner Suria Martara Tjahaja said that full-year production would depend on price development in the international market. ?The (coal production) target until end of this year we?ll still depend on coal price situation,? he told Kontan on Thursday.

The company?s coal production this year comes 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 has suspended the operations of two other subsidiaries PT Loa Haur (with coal mines in Central Kalimantan), and PT Kaltim Mineral (in East Kalimantan) amid the lingering coal downturn.

Resources Alam through subsidiary PT Khatulistiwa Hidro Energi is currently in process of developing a 6,400 Kwh mini hydro power plant in Citatah, West Java, as part of diversification strategy. The company holds a 15-year contract to sell the electricity to state-owned power firm PT PLN. (*)