Resources Alam to produce 5.2 mt of coal this year

By Donal Haromunthe

IDX-listed coal mining company PT Resources Alam Indonesia Tbk (KGGI) said that it plans to produce 5.2 million tons of coal this year, a slight increase from last year's 5 million tons.

Wimpi Salim, Director of PT Resources Alam Indonesia told Petromindo.com that amidst the coal price downturn, the company will enhance efficiency to help ensure healthy margins as it increases output.

"We have enough reserves to produce 5.2 million tons of coal this year. For that purpose, we will try to lower the cost of coal hauling and negotiate many things with our contractors", he said, adding that the drop in global oil price bodes well in helping to cut down costs.

"I am optimistic that we can cut cost by 10 percent," Salim said. The company exports about 80 percent of its output mainly to China.

Editing by Reiner Simanjuntak