Adaro reports higher coal production in 2008

IDX-listed mining firm PT.Adaro Energi Tbk reported on Wednesday that 2008 coal production from its South Kalimantan coal mining subsidiary PT.Adaro Indonesia increased by 7 percent to 38.5 million tonnes.

The company also reported that sales volumes increased by 9 percent to 41.1 million tonnes, of which 39.8 million tonnes was sold by Adaro Indonesia.

?The current economic crisis is reducing the emphasis on a ?fast-as-possible? pace of annual growth, and shifting towards a more measured pace. As such, while the internal target remains the same, Adaro Energy will not likely achieve the high end of its production and sales target of 42-45 million tonnes,? the company said.

The company reported that its 2009 average selling price would be at a range of US$52-65 per tonne versus US$38-39 in 2008.

?Adaro Energy has not revised its price targets for 2008 and 2009. Over 95% of the company?s sales are done on a one year negotiated basis, with the rest set by an index. Nearly 70% of 2009 deliveries have been priced. The average achieved selling price for Envirocoal in 2009 will be higher than in 2008. Due to the high price environment in 2008, the Government of Indonesia required Adaro increase the prices on a number of 2009 contracts,? it said. (alex)