ID :
20049
Wed, 09/17/2008 - 20:39
Auther :
Shortlink :
https://www.oananews.org//node/20049
The shortlink copeid
PT BATUBARA BUKIT ASAM'S COAL PRODUCTION TO REACH 20 MILLION TONS BY 2013
Jakarta, Sept 17 (ANTARA) - PT Batubara Bukit Asam Tbk expects its coal production to reach 20 million tons a year in 2013 following the completion of two coal transportation corridors in South Sumatra where its mines are located, a spokesman said.
"This year our production is estimated to reach just 10 million tons," the company's president director, Sukrisno, told ANTARA at the office of the state minister of state-owned firms here on Wednesday.
He said the firm had set up a joint venture company named PT Bukit Asam Trans Railway with Transpacific Railway and China Railway.
PT Batubara Bukit Asam and China Railway each held a 10-percent stake and Transpacific Railway an 80-percent stake in the joint venture.
Bukit Asam Trans Railway would operate coal trains on the Tanjung Enim-Tarahan route in South Sumatra starting next year and increase its transporting capacity in stages.
He said PT Batubara Bukit Asam was also cooperating with state-owned PT Kereta Api to develop the infrastructure and increase car facilities on the Muara Enim-Tarahan and Muara Enim-Kertapati routes.
The company's finance director, Achmad Kuntjoro, said the investment in the project reached around Rp6.7 trillion with PT Kerat Api contributing 70 percent.
Only Rp1.6 trillion of the equity funds had so far been provided while the rest was expected to be met with funds from national banks, he said.
"The signing of the document for the establishment of the joint venture is scheduled to be done next week," he said.
"We (PT Kereta Api) will increase the capacity by around 20 percent in six years from currently only 9.7 million tons," he said.
Sukrisno said transportation was a factor that had hindered coal production increase.
"The transportation problem had caused a bottle neck and therefore provision of transportation means would be made a priority," he said.
On the price of coal, Sukrisno said the company would be more prudent in meeting contracts especially the long-term ones.
The company had taken a lesson from the case that happened in May 2008 when the price of coal rose up to 60 percent while the company had only projected it to rise to between 15 and 20 percent making the company to suffer a loss, he said.
In 2009 however the company had to settle a long-term contract (one year) with a buyer, he said. "By the end of December the contract for supplying 6.1 million tons of coal for Indonesia Power has to be settled as well as a contract with a Japanese company," he said.
Although it would settle contracts with several companies PT Batubara Bukit Asam would set aside 10 percent of its total production for the spot market, he said.
"This year our production is estimated to reach just 10 million tons," the company's president director, Sukrisno, told ANTARA at the office of the state minister of state-owned firms here on Wednesday.
He said the firm had set up a joint venture company named PT Bukit Asam Trans Railway with Transpacific Railway and China Railway.
PT Batubara Bukit Asam and China Railway each held a 10-percent stake and Transpacific Railway an 80-percent stake in the joint venture.
Bukit Asam Trans Railway would operate coal trains on the Tanjung Enim-Tarahan route in South Sumatra starting next year and increase its transporting capacity in stages.
He said PT Batubara Bukit Asam was also cooperating with state-owned PT Kereta Api to develop the infrastructure and increase car facilities on the Muara Enim-Tarahan and Muara Enim-Kertapati routes.
The company's finance director, Achmad Kuntjoro, said the investment in the project reached around Rp6.7 trillion with PT Kerat Api contributing 70 percent.
Only Rp1.6 trillion of the equity funds had so far been provided while the rest was expected to be met with funds from national banks, he said.
"The signing of the document for the establishment of the joint venture is scheduled to be done next week," he said.
"We (PT Kereta Api) will increase the capacity by around 20 percent in six years from currently only 9.7 million tons," he said.
Sukrisno said transportation was a factor that had hindered coal production increase.
"The transportation problem had caused a bottle neck and therefore provision of transportation means would be made a priority," he said.
On the price of coal, Sukrisno said the company would be more prudent in meeting contracts especially the long-term ones.
The company had taken a lesson from the case that happened in May 2008 when the price of coal rose up to 60 percent while the company had only projected it to rise to between 15 and 20 percent making the company to suffer a loss, he said.
In 2009 however the company had to settle a long-term contract (one year) with a buyer, he said. "By the end of December the contract for supplying 6.1 million tons of coal for Indonesia Power has to be settled as well as a contract with a Japanese company," he said.
Although it would settle contracts with several companies PT Batubara Bukit Asam would set aside 10 percent of its total production for the spot market, he said.
