Banpu says collapsed bridge not affecting shipment to buyers

IDX-listed coal mining group PT Indo Tambangraya Megah Tbk, a unit of Thai energy conglomerate Banpu Plc said on Tuesday that its coal shipment activities to buyers will not be affected by the collapse of Mahakam bridge.

?The Company has studied that there will be no impact on the coal delivery to the customers for the next two weeks as the company has had sufficient coal stock in Bontang port. And should the route still cannot be in operation after that two weeks, the company has also considered to replace the coal of some shipments or rearrange the vessel scheduling to minimize the impact,? the company said in a filing with the IDX on Tuesday.

The company through its subsidiary companies operates coal mining in 5 locations and the cargo from two locations are trans-shipped through Mahakam river, they are from PT Trubaindo Coal Mining and PT Kitadin, Embalut, their cargo are transported to the loading point in Bontang and Balikpapan

?The Company believes that the disruption of the trans-shipment route from those two mining locations towards the whole 2011 company performance will not be material,? it added.

The bridge that collapsed on Saturday at Kutai Kartanegara part of Mahakam river in East Kalimantan has completely halted coal barging operations of miners which are located on the upper side of the river with estimated volume of around 200,000 tonnes per day.

Sources said that it will take 10-15 days before barging operations will be allowed to recommence at Mahakam. (romel)