Banpu?s Q2 coal output, selling prices increase

Thai energy firm Banpu reported on Wednesday the coal output during second quarter of 2011 from its Indonesian mines increased by 16.7 percent compared to the same period of last year to 5.823 million tonnes of coal

?The performance of core operations remained supported largely by strong coal prices. For Indonesia operation, coal sale volume was relatively stable compared to previous quarter at 5.262 million tonnes,? the company said in statement.

Banpu has five coal mine subsidiaries operating in East and South Kalimantan, namely: PT Indominco Mandiri, PT Jorong Barutama Greston, PT Kitadin, PT Trubaindo Utama and PT Bharinto Ekatama.

The Indominco mine operation was affected by continued rainfall with sale volume down by 6% compared to the corresponding period last year to 3.063 million tonnes. Trubaindo performed well with 4% higher sale volume to 1.575 million tonnes as a result of additional mining equipment put in place, the company said.

The average coal selling price, however, rose by 10% QoQ to US$ 96.49 per tonne due to realization of higher contract price and resilient market trend. As a result coal sale revenue increased 8% QoQ.

The higher coal selling price in Indonesia helped to improve gross profit margin from Indonesia to 50% (from 47% in 1Q/2011) despite 17% QoQ increase in diesel price to US$ 1.09 per litre, it said. (denny)

	2Q11	1Q11	2Q10
Production (k tonnes)
Indonesia
Indominco - West	1.829	1.835	2.527
Indominco - East	1.597	1.304	1.072
Trubaindo	1.683	1.453	1.125
Jorong	417	325
Kitadin	298	292	265
Total	5.823	5.209	4.989
Coal sales volume (k tonnes)
Indominco	3.063	3.249	3.786
Trubaindo	1.575	1.520	1.184
Jorong	378	311	51
Kitadin	246	274	300
Total	5.262	5.353	5.322