Banpu sees 2007 Indonesian production flat

Thai energy conglomerate Banpu Plc expects coal production form Indonesian mine operations to remain flat at 19 million tonnes in 2007, a company official said.

Banpu Indonesia president Somyot Ruchirawat told Petromindo.Com in Wednesday interview that production would come from Indominco Mandiri (East Kalimantan), Trubaindo (East Kalimantan) and Jorong Barutama Greston (South Kalimantan) mines with planned output of a little over 10 million tonnes (MT), 5MT and 3MT, respectively.

Somyot said Banpu did not include production from Kitadin mine in East Kalimantan next year in anticipation of inability to exploit the mine?s remaining reserves after compensation talks with villagers to acquire the land deadlocked.

Banpu is currently undertake feasibility study to bring its Bharinto Ekatama mine, also in East Kalimantan to come onstream in 2008, with initial output of below 1MTPA, he said.

Somyot added that Banpu had already sanctioned expansion of its Bontang coal port in East Kalimantan with investment of US$60 million. The port expansion, which will be completed in mid-2008, will increase processing capacity to 18MTPA of coal, complete with blending facility. The port?s stockpiling capacity will also be doubled to 800,000 tonnes, he said. The port is able to service post-panamax vessels.

Banpu export most of its coal with Japan market as top export destination, absorbing some 31 percent of Banpu Indonesia? production. (alex)