Reswara to double coal output this year

Coal miner PT Reswara Minergi Hutama, a subsidiary of IDX-listed PT ABM Investama Tbk, aims to double production this year to 8.5 million tons from 4.3 million tons last year, Kontan reported on Monday.

Harry Asmar, President Director of Reswara, said that the bulk of the output will come from two subsidiaries including PT Tunas Inti Abadi (TIA) and PT Media Djaya Bersama (MDB). ?Tunas Inti Abadi will increase coal output to 5 million tons from 4 million tons last year,? he said over the weekend.

TIA owns two IUP concessions in East Kalimantan, while MDB owns two concessions in Aceh.

Harry said that the toughest challenges to realize the production target is the lingering low coal price, and the government?s plans to increase the coal royalty tariff to 10-13.5 percent for IUP mining license holders from the current 3-7 percent. (*)