Borneo aims to produce 4-5m tons of coking coal next year

By Hiski Darmayana

IDX-listed coking coal mining firm PT Borneo Lumbung Energi and Metal Tbk has set a target for production to increase to 4-5 million tons next year, from the estimated 3.5 million tons for this year

?We have to recalculate the precise production target for next year due to a delay in the arrival of heavy equipment. But what?s certain it would be in that range (4-5 million tons),? President Director Alexander Ramlie told Petromindo.com Wednesday.

Marketing Director Ken Allan said that much of the company?s output would be exported mainly to China and India. ?Growth for China (market) will still be large next year. It?s still potential,? he said.

He added that starting next year, the company will start selling output in the domestic market specifically to the Krakatau Posco steel plant which will operate at the end of this year. ?We?ll probably supply about 900,000 tons to the plant,? Allan said.

Borneo Lumbung Energi, which is controlled by tycoon Samin Tan, has a 21,600 hectares concession in Murung Raya, Central Kalimantan, which holds reserves of 300 million tons of coking coal.

Editing by Reiner Simanjuntak