UT to ramp up 2011 coal production

Indonesia-exchange listed firm heavy equipment distributor and miner PT United Tractors (UT) said its Kalimantan coal mining units will produce 4.5-5.0 million tons (MT) of coal in 2011, higher than this year?s target of 3.25-3.5 MT, a company official told Petromindo.Com on Wednesday.

Corporate Secretary Sara Loebis said that its South Kalimantan mine PT Dasa Eka Jasatama (DEJ) will produce 2.5 MT next year, the same with this year?s target, with the balance expected to come from Central Kalimantan units PT Tuah Turangga Agung (TTA) 1.5-2.0 MT, up compared to this year?s target of 750,000-1.0 MT and PT Agung Bara Prima (ABP) 500,000 tons, which ABP will start commercial operation in 2011.

For next year, DEJ?s coal production has been 100 percent contracted under long term contract with existing offtakers, meanwhile for TTA and ABP coal output are still open for any potential buyers. ?It depend on negotiation weather spot or term contracts, ?Sara said.

UT produced 2.39 MT of coal in 2009. (denny)