Resources Alam subsidiaries to resume production if coal price recovers to $65

By Thomas Sembiring

IDX-listed coal firm PT Resources Alam Indonesia said that coal production at its Loa Haur and Kaltim Mineral concessions in Kalimantan will resume if price of the commodity recovers to around US$65 per ton.

Specifically for the Loa Haur concession run by susbsidiary PT Loa Haur, it will also depend on the government approval of the IPPKH forestry permit requested by the company.

This was said by company Director Wimpi Salim on the sidelines of the 4th Annual Coal Buyers and Producers Meeting on Wednesday in Jakarta held by Petromindo.com.

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