Adani to more than triple Indonesian coal production

PT Adani Global, a subsidiary of Indian firm Adani Group will ramp up production to 3.5 million tonnes (MT) from its Bunyu Island mine in East Kalimantan this year from 1 MT last year.

A company official told Petromindo.Com that this year?s production would be entirely dedicated to fulfill 4 million tonnes contract commitments with three buyers namely Japan?s trading firm Kowa Company Limited (1.5MT) a Dubai-based firm (1.5MT) and sister company Adani Global Pte.Ltd.(1MT)

The company had supplied 500,000 tonnes of coal to Adani Global Pte. Ltd. last year. The contracts, the official said, will expire this year.

The official said that starting this year, Adani will stop using handymax vessel to ship its coal and will only use panamaxes for efficiency reasons.

Adani produces low-rank coal with CV of 4,500-4,750 kcal/kg (ADB) with total moisture of about 50 percent, making the coal only suitable to be used in India as blending coal.

Coal production from the company?s mine are hauled to jetty port through a 1.4 km road and barged to a transhipper in Bunyu, which is only 9km away from the jetty. (denny)