Banpu Q2 Indonesian coal sales down on heavy rain

Thailand?s largest coal miner Banpu PCL reported Monday its Indonesian coal sales declined to 4.081 million tons in the second quarter of 2006 from 4.237 million tons in the previous quarter.

?The reduction in shipment was attributable to an unusual rainy season in Kalimantan area and in the northern part of Thailand. This reduced the capability of mining and transportation equipment particularly at Trubaindo, Jorong and the Thai mines, whereas the biggest mine Indominco reported slight increase in sale volume,? Banpu said in its quarterly report to the Stock Exchange of Thailand.

During the second quarter, Banpu?s Jorong mine declared a month period of force majeure on its contracts with customers following massive floods hampered its mine. This mine?s coal output declined to 0.570 million tons in the second quarter from 0.836 million tons in the first quarter.

According to Banpu?s quarterly report, the average coal selling price in this period largely reflects the prevailing market price during late 2005, in which the regional coal price declined.

?Average coal selling price was US$33.54 per tons, decreasing 2% from last year from realization of lower contracted prices during the fourth quarter of previous year and less contribution from high quality coal,? Banpu 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. (robert/denny)

Banpu Indonesian Coal Production, Sales and Reserves for the first quarter ended June 30, 2006
Quantity (million tons)
Source	Reserves	Production	Reserves	Sales
	As of Mar 31,2006	Apr-Jun'06	As of Jun 30,2006	Apr-Jun'06
1. Jorong	29.364	0.570	28.794	0.874
2. Indominco	70.548	2.453	68.095	2.342
3. Kitadin	18.987	0.402	18.585	0.186
4. Trubaindo	65.107	0.800	64.307	0.679
5. Barasentosa	32.800	-	32.800	-
6. Bharinto	28.500	-	28.500	-
TOTAL	245.406	4.225	241.181	4.081