BENGKULU'S COAL PRODUCTION PROJECTED AT 2.1 MILLION TONS

Bengkulu, Feb 8 (ANTARA) - Coal production in Bengkulu province this year is projected to reach 2.1 million tons or up from 1.4 million tons in 2009, a local energy official said.

"This year's coal production is predicted to reach 2.1 million tons because a number of new coal mines are expected to begin producing soon," provincial energy and mineral resources office chief Winarkus said here on Monday.

He said some 50 mining companies had conducted explorations in Bengkulu last year and three of them would this year begin producing.

The three new mining companies were expected to increase the number of coal mines in the province.

"The increasing number of mining companies operating in the province this year will obviously lead to a rise in Bengkulu's coal production which stood at 1.4 million tons last year," Winarkus said.

In an effort to increase its income from the coal mining sector, Bengkulu's provincial administration would raise the rate of third parties' contributions o by 100 percent or from Rp500 per ton of coal to Rp5,000 per ton, he said.

Third parties' contributions to the provincial government's revenue were stipulated in Governor's Regulation No.23.

An increase in the rate of third parties' contribitions was considered appropriate as the international coal price had recently risen from US$20 per ton to US$40 - US$60 per ton, he said.

"While the coal price has risen, repairing the public roads that have been damaged by coal mining companies also requires a lot of funds," Winarkus said.

Coal companies actually were supposed to have their own roads to transport their product but in reality they were using public roads.

In addition, he said the funds from the third party contribution of Rp500 per ton of coal was able to increase regional income of Rp500 million per year but they were not in balance with the expense needed for public roads repairs.