KPC Targets Coal Production of 53.5 Million Tons in 2024

KALIMANTAN – A subsidiary of PT Bumi Resources Tbk (BUMI), PT Kaltim Prima Coal (KPC) is targeting coal production of 53.5 million tons this year. This figure is not much different from last year’s production realization which was recorded at 54 million tons.

Chief Operating Officer (COO) Hendro Ichwanto said that the production target also applies to the following two years, namely 2025 and 2026.

“This year we are at 53.5 million tons. The same (2025 and 2026), flat 53.5 million tons,” explained Hendro during a media visit to the KPC M1 Building Mine Site head office, Sangatta, East Kutai, East Kalimantan, Thursday (21/3/2024).

Hendro said, this production target has also been approved by the Ministry of Energy and Mineral Resources through the 2024-2026 Work Plan and Budget (RKAB).

As previously reported, Acting Director General of Mineral and Coal Bambang Suswantono admitted that his party had received 883 applications for Work Plans and Budgets (RKAB) for coal commodities. Of the total, only 587 RKAB were approved while 121 were rejected and 100 others were returned with revisions

“The total RKAB for coal submitted (to the Ministry of Energy and Mineral Resources) this year reached 883 applications, of which 587 were approved, 121 were rejected, 100 were returned, while 75 remained in balance (evaluation),” explained Bambang during the Public Hearing (RDP) with Commission VII DPR RI, Jakarta, last Tuesday (19/3/2024).

He said that the RKAB application which was rejected was also based on various reasons. A total of 8 applications were rejected because the mining business permit (IUP) had expired, while 75 were due to the issue of non-tax state revenues (PNBN) aka inappropriate royalty payments.

Then, 4 were rejected due to feasibility study and environmental impact analysis (AMDAL) issues, 13 due to MODI data issues, 8 due to financial issues, 11 due to PPM issues, while the other 2 were due to unspecified technical issues.

Bambang said, for 2024, the total tonnage of coal RKAB approved is 922.14 million tons, 2025 will be 917.16 million tons, and 2026 will be 902.97 million tons.

(nng)