Rimau revises coal output target for second time

By Cepi Setiadi

Integrated mining corporation Rimau Group has revised downwards this year?s coal output of its subsidiaries PT Rimau Energy Mineral (REM) and PT Senamas Energindo Mineral (SEM) in Central Kalimantan from 4.6 million tons to 3 million tons.

Vinsensius, President Director of Rimau Group, told Petromindo.com that the company lowered the coal production due to enduring uncertainty over coal price. ?We are now focused on meeting the existing contractual obligations in the existing markets,? he said adding that this policy will be applied until after the coal price has recovered.

It is the second price revision by the firm thus far.

At the beginning of the year, the company planned to significantly increase production up to 7 million tons this year from 4.6 million tons in 2014. But the lingering market slowdown forced the firm to revise its coal production target to 4.6 million tons. And now, the firm cut again the production target to 3 million tons.

Editing by Johannes Simbolon