Banpu sees 10 percent increase in 2004 Indonesian coal production
Friday, February 27 2004 - 03:10 AM WIB
The main driver for the increase is the planned 16 percent production rise from Indominco, where production is expected to reach 7.4 million tons this year compared to 6.3 million tons last year. Indominco had completed its terminal enhancement in 2003, which increases capacity from 6 million tons per annum (MTPA) to 8.5 MTPA and enabling accommodation of Post Panamax vessels.
The company also expects production from its Jorong mine in South Kalimantan to slightly increase to 3 million tons this year from 2.9 millions last year.
Kitadin mine?s production in East Kalimantan is expected to decrease to 2.5 million tons this year from 2.7 million tons last year.
Banpu expects production addition of 0.3 million tons this year from its currently developed Trubaindo mine, also in East Kalimantan. The mine is expected to commence production in the third quarter of this year, with first barged cargo going out the following year. The mine is expected to increase production to 3 million tons in 2005 and to 5 million tons in the following year.
Banpu said in 2003, Japan remained the single top destination export for its Indonesian coal by absorbing 3.8 million tons, most of which came from Indominco. The company sold 1.5 million tons of its coal to domestic consumers in 2003, with the remaining balance went to countries such as Taiwan, Thailand, Italy, India, Philippines and Korea. The company expects to increase market share to Japan to 36 percent in 2004.
The company also reported to maintain the balance of term versus spot contracts ratio at 55:45 to take advantage of upward coal price trend as the company predicted the current strong price trend is unlikely to slow. Banpu predicted its 2004 average selling price will increase by 8-10 percent from last year. (alex)