Fri, 31 Dec 2010

TEMPO Interactive, Jakarta:The Energy and Mineral Resources Ministry has projected a US$ 2.2 billion increase in mineral and coal investments next year, an increase from this year’s target of US$ 2.11 billion.

The target has been increased in line with plans to increase mineral and coal production. Mineral and Coal director-general Bambang Setiawan said the investment target was adjusted after contracts (KK) amounting to US$ 1.29 billion, coal contracts of work (PKP2B) amounting to US$ 912 million, and state-owned enterprises’ mining rights (KP) worth US$ 50.9 million, were secured.

The government plans to boost mineral productions to welcome the high demand, especially as the price of mining commodities continues to rise. “If there is a production increase, there will surely be an increase in investment because they need additional equipment,” Bambang said.

Lead production, projected to reach 54,000 tons this year, is targeted to reach 95,000 tons next year. Bauxite production will be increased to 8.25 million tons from the previous 5.15 million tons. Coal production is estimated to be 375 million tons from the previous 275 million tons.

Investments in the mineral and coal sector this year have exceeded the target. Until the end of December, investments in this sector totaled US$ 2.282 billion, an increase from the initial target of US$ 2.119 billion.

Besides the contract from various mining companies, according to Bambang, investments from mining service business activities amounted to 904.82 million in 2010, making total mineral and coal investments in 2010 worth US$ 3.186 billion.