Adaro targets output of 19m tons

JAKARTA (JP): Coal mining company PT Adaro Indonesia has planned to increase its output to 19 million tons of coal this year, up from 16 million tons in 2000, amid stronger world demand for the commodity.

Adaro general manager A.H. Chia said that, despite a slump in the world economy, there was an increase in coal demand globally.

"World demand for coal is picking up because of higher fuel prices," he said on the sidelines of a business luncheon organized by the Indonesia-Australia Business Council (IABC).

He said that this was the first year the coal industry had seen world coal prices rebound, after a slump in recent years due to oversupply.

Chia said Adaro was still able to raise output at its coal mine in South Kalimantan as production there had yet to reach its full potential.

The company hoped to reach its optimum annual production rate of 20 million tons next year, he added.

Adaro produces clean coal, labeled "Envirocoal".

Although its coal contains only a moderate energy capacity, Adaro claims it has the world's lowest sulfur and ash content, resulting in environmentally-friendly coal.

The company said its customers use the coal in tandem with high heat-value coal to achieve local environmental emission standards.

Adaro's primary markets are Europe and America.

Chia further said that illegal miners had left Adaro's mining area.

"They left because mining at our location turned out to be economically unviable," he said.

He also said the illegal miners were discouraged from continuing their activities due to the long distance between Adaro's operation and the ports.

The illegal miners have moved to other sites which are closer to the ports, he said.

The local community, he added, had shown little support for the illegal miners, given their environmentally destructive activities.

"People began to realize that illegal miners brought only short-term benefits. Once they are done, they just leave," he said.

Adaro is 50 percent owned by Australia's New Hope Corporation Ltd, 40 percent by the local Swabara Group, and 10 percent by American-based Mission Energy.(bkm)