Adaro targets output of 19m tons

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)