Kideco to up coal production by 9%

PT Indika Energy plans to raise coal production in its subsidiary Kideco by 9 percent next year to take advantage of growing demand for the commodity.

Indika Energy chief financial officer Azis Armand told a media gathering Tuesday that Kideco planned to increase annual production to 24 million tons in 2009, up from its 22-million-ton estimate for this year.

To achieve its aim, the company has set aside US$30 million to increase production capacity to 30 million tons next year, he said.

"We see that there is still a lot of potential in this sector, with increasing demand from China and India," he said.

Retina Rosabai, Indika vice president for investor relations, said 70 percent of the company's coal output was exported.

Kideco, the country's third-largest coal producer, has all of its mining sites in Kalimantan.

To strengthen its position in the local market, the company has recently submitted bids to acquire two power projects worth $235 million in total.

The company included the two projects in its prospectus report along with many others amounting to $4.4 billion in total.

Indika is now 20 percent owned by the public having previously been controlled by local businessmen Agus Lamono and Wiwoho Basuki.

source: Jakarta Post | June 2008