Banpu Q1 Indonesian coal sales up 19%

Thailand?s largest coal miner Banpu PCL reported Monday its Indonesian coal sales reached 4.237 million tons in the first quarter of 2006, a 19 percent increase compared to the previous quarter coal sales of 3.55 million tons.

?This was led mainly by a strong production at the biggest mine Indominco which supplied 2.5 million tons. Trubaindo mine was ramping up production at a fairly steady pace. The mine delivered 0.8 million tons this quarter,? Banpu said in a report to the Stock Exchange of Thailand.

Banpu said its overall coal sales revenue improved to Bt7,253m (US$190 million) of which about Bt6,662m ($174 million) accounted for its Indonesian coal sales. The company?s average coal selling price was stable at $35.32 per ton in the quarter.

Banpu also said the increasing sales from the premium-grade Trubaindo coal will raise the quality profile of coal portfolio, making the blended price in this year less fluctuated as opposed to the coal price movement in the market.

Banpu added that the floating diesel price in Indonesia had inflated production cost and eased gross profit margin, while export tax added Bt233m into this quarter?s selling expenses. ?Cost management will become more challenging,? the company said.

Banpu operates six Indonesian coal mines, four of which are already in production including Jorong Barutama Greston in South Kalimantan, Indominco Mandiri, Kitadin, and Trubaindo, which are all located in East Kalimantan. Meanwhile, two other coal mine concessions are Bharinto in East Kalimantan and Barasentosa Lestari in South Sumatra.

Banpu has reportedly planned to sell its Barasentosa coal mine due to rising costs and a low investment return. (Robert)

Banpu Indonesian Coal Production, Sales and Reserves for the first quarter ended March 31, 2006
Quantity (million tons)
Source	Reserves	Production	Reserves	Sales
	As of Dec 31,2005	Jan-Mar'06	As of Mar 31,2006	Jan-Mar'06
1. Jorong	30.200	0.836	29.364	0.730
2. Indominco	72.900	2.352	70.548	2.484
3. Kitadin	19.200	0.213	18.987	0.222
4. Trubaindo	65.800	0.693	65.107	0.801
5. Barasentosa	32.800	-	32.800	-
6. Bharinto	28.500	-	28.500	-
TOTAL	249.400	4.094	245.306	4.237