Adaro sees 2009 production at lower end of target

IDX-listed mining firm Adaro Energy said it continued to target 42-45 million tonnes of production in 2009 from its South kalimantan coal mining giant unit PT.Adaro Indonesia (AI), although the actual number may end up in the lower part of that range.

AI production increased by 8 percent to 9 million tonnes in the first quarter of 2009 despite the wet weather conditions, but coal sales decreased by 2 percent to8.6 million tonnes, which was 14 percent below sales target of 10 million tonnes.

?Adaro continues to remain optimistic it can achieve its 2009 price targets. At the moment Adaro?s volumes are sold out for 2009 and 80% of the volumes have been priced, with substantially all on a negotiated basis,? the company said in a report released Thursday. It did not dsclose its target price.

The company also reported that in the first quarter of 2009, the annual capacity of the Kelanis River Terminal increased from 45 million tonnes to 55 million tonnes after the completion of a US$20 million capital spending program. In combination with the dredging of the Barito River channel, completed at the end of last year, Adaro Energy?s growth is not expected to be limited by infrastructure for this year and next year, it said. (denny)