Shipment problem hampers Danau Mashitam's coal exports

Bengkulu-based coal mining company PT Danau Mashitam (DMH) has been facing difficulties to ship its coal to its foreign buyers particularly in India and China due to the silting up of the shipment route near Baai island.

Ade Gumilang, an executive of the coalmining company, said in Jakarta on Tuesday that the silting up of the shipping route near the Baai island had caused a sharp decline in the coal shipment to the two countries.

"The company is only able to transport between 6,500 to 7,000 tons per shipment at present, as compared to between 25,000 tons and 30,000 tons previously due to the silting up of the shipping route," he said.

According to him, the tsunami disaster which destroyed many parts of Aceh at the end of 2004 had caused the silting up of the shipping route, particularly those located near the Baai island.

He said that the company had to carry out the shipment from Tikus island in order to avoid the Baai island, but it had caused an additional shipment cost by US$7.5 per ton. "It is burdening the foreign buyers," he added.

Ade said that the company was now focusing coal exports to Malaysia and the Philippines until the shipping route near the Baai island was back to its former condition. The company uses smaller vessels to ship its coal to the two countries.

The Bengkulu government is now dredging the shipping route near the Baai island. The dredging works are scheduled for completion at the end of this month.

DMH plans to increase its annual coal production from 174,000 tons last year to around 250,000 tons this year.

The company general manager Sahala Napitupulu said DMH produced 45,000 tons in the first quarter and hoped to make the same level in the second quarter. (dino)