Adaro's 2003 coal output up 8% to 22.49 million tons

Indonesian top coal producer PT Adaro Indonesia reported that its coal production in 2003 increased by 8 percent from the previous year to 22.49 million tons, or close to its maximum production capacity.

According to the company?s Annual Review 2003, the increase was a result of the upgrading of its Kelanis facility and coal haul road. Weather conditions were normal throughout the year, causing no delays in production.

?Future production is expected to be at a similar level,? Adaro said.

Adaro reported that its sales of Envirocoal for 2003 also increased by 1.82 million tons to 23.07 million tons. ?Significant sales increases were to Japan with 2.6 million tons sold in 2003, India with 1.7 million tons, USA with 1.1 million tons and Malaysia with 1.0 million tons sold,? Adaro said.

The company also said all sales were on term contract basis of one year or longer, except for 1.12 million tons, or 5 percent of sales in the year. ?This low percentage of spot sales is expected to further decrease in 2004,? Adaro said.

The company also said delivery for new supply contracts to the United Kingdom, France and Slovenia would start this year.

Adaro added that it had started evaluation of other near surface coal resources at its concession following strong demand for Envirocoal. ?These other coal resources are all low sulphur and low ash but higher moisture and therefore lower heat value, but if market trends continue in their present direction such coals may become economical, particularly in the domestic market,? the company said.

Adaro operates a huge coal mine in South Kalimantan. Since the start of production in 1991, the company has produced and sold around 130 million tons. (robert)