PTBA to raise coal production

PTBA to raise coal production

SINGAPORE (Reuter): State-owned coal mining group PT Tambang
Batubara Bukit Asam (PTBA) said yesterday it plans to expand coal
production rapidly in the years ahead as part of Indonesia's
drive to make up for falling oil reserves.

Company president R.A. Sunardi told a coal mining conference
here that PTBA expected to produce at least 8.7 million tons of
coal in 1996, up from 8.2 million in 1995.

But by 2005, the company plans annual production of 22 million
tons, he said. The construction of a port and rail and loading
stations to support the expansion had already started, he added.

"By the year 2000...it should be able to support production
capability in excess of 10 million tons per annum," he said.

Sunardi said the company planned to go public by 1998 at the
latest.

"The company has plans of going public in 1997 or 1998 at the
latest, which will help achieve some of its objectives as it
would relax a lot of the government restrictions currently
imposed on the company's operations," he told a mining conference
in Singapore.

PTBA has coal reserves of around 5.6 billion tons and
projected coal production in 1997 of almost 8.7 million tons, up
from 8.2 million in 1995, Sunardi said.

Indonesia, a member of the Organization of Petroleum Exporting
Countries (OPEC), plans to expand its coal production rapidly
over the next decade to make up for dwindling oil reserves.

Sunardi said the government recently announced new investment
rules in mining to make investment easier, but also to enable
companies to operate more freely.

"As part of this program, Bukit Asam is taking steps to ensure
that in terms of financial information, environment protection,
geological reserves and other criteria, the company satisfies all
international and domestic stock regulations," he said.

Indonesia, the only Asian member of the Organization of
Petroleum Exporting Countries (OPEC), has expanded coal
production in the past 10 years owing to the prospects of
dwindling crude reserves.

It expects to become a net oil importer during the next
decade.

Government figures forecast national coal production will rise
to 120 million metric tons by 2008 from 45 million metric tons in
1995.

Domestic demand is set to rise to more than 90 million tons by
2008 from around 15 million tons in 1995, government figures
show.