Adaro?s H1 production reaches 23 mt

By Peni Pedriawan

IDX-listed coal miner PT Adaro Indonesia reported that production volume increased 10 percent to 12.05 million tons in the second quarter ending June 30, compared to the first three months of 10.96 bringing the first semester output to 23.01 million tons.

?We revised our 2012 annual production guidance down from 50-53 million tons to 48-51 million tons, due to difficult market conditions,? the company said in the quarterly report submitted to the IDX.

It said that the second quarter?s sales volume was 12.44 million tons down from the same period last year of 13.11 million tons.

?All of our sales volume for this year has been contracted and the bulk of it has already been priced based on fixed price and index-linked contracts. None of our coal is sold on the spot market,? it said.

It said that the company?s pricing strategy was selling coal at a competitive price and in accordance with prevailing Indonesian regulations on the Indonesian coal reference price or ?Harga Batubara Acuan? (HBA).

We sold 0.51 million tons of E4500 to two customers in Korea and Indonesia.

The company said that it was on track to achieve its overburden removal target for this year as overburden removal increased 26 percent y-o-y to a record 87.29 million bank cubic meters

?We are on track to achieve our overburden removal target of 321.15 million bank cubic meter (Mbcm) for this year as overburden removal increased 26 percent y-o-y to a record 87.29 Mbcm. The normal weather conditions and our investment in new and larger heavy equipment contributed to this increase. We achieved a record daily overburden rate of ~1,000,000 bcm for the entire month of May,? it said.

Editing by Adianto P. Simamora