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.