Santan Batubara to lower 2012 coal output

By Edgar Subroto

East Kalimantan coal miner PT. Santan Batubara expects to cut down production to become 2 million tons from initial target of 2.5 million tons for this year due to the current downward trend of coal price, an industrial source told Petromindo.com.

The source said that the company is also reducing some of its non-staff employees at its Separi block area.

Santan Batubara is owned by Indika Energy Tbk?s mining contractor unit PT Petrosea, which has 50 percent stake with Harum Energy.

Petrosea is responsible for mining activities at Santan while Harum is responsible for marketing.

Santan sells its coal production to domestic market and India, Korea and China.

Santan is the third generation CCoW holder with concession of 25,000 hectares within three regencies Kutai Kartanegara, East Kutai and Bontang.

Editing by Adianto P. Simamora