Banpu on track to meet Indonesian production target, sees higher selling prices

Thai energy conglomerate Banpu Plc is on track to meet its production target of 13.1 million tons from its Indonesian coalmines, the company said in an analyst presentation in Bangkok on Wednesday.

The company?s Indominco mine in Bontang, East Kalimantan is set to produce 8 million tons this year, up 600,000 tons from earlier estimate, while another East Kalimantan mine Kitadin?s production is expected to drop to 1.8 million tons this year from 2.4 million tons last year due to technical difficulties.

The company?s Jorong Barutama mine in South Kalimantan will produce 3 million tons as planned this year.

The company?s Trubaindo mine in East Kalimantan is expected to commence production in this quarter with production of 300,000 tons this year, ramping up to 3 million tons next year.

Next year, Banpu expected to produce 15.8 million tons; 8 million tons from Indominco, 3 million tons each from Trubaindo and Jorong Barutama and 1.8 million tons from Kitadin. 50 percent of the company?s 2005 planned Indonesian production had been committed, using 2004 base price, said the company.

Banpu said in 2004, average coal price reached US$25.5 per tonne, a 15 percent increased from last year, while next year the company expected average price increase of at least 20 percent .

Banpu also expected price to remain strong in 2005 despite decreasing price trend. ?Coal prices in 2005 are likely to stay high relative to historical trend, while fluctuation in Chinese export will influence price outlook for Asia-Pacific region,? said the company.

Barlow Jonker price index had eased down to US$53.50 in October from historical high of above US$60 per tonne in the previous months. Banpu said coal prices softened due to easing fears of supply shortage shocks.(alex)