Banpu sees lower coal sales price in 2010

IDX-listed coal miner PT Indo Tambang raya Megah (ITMG), a unit of Thai energy conglomerate Banpu PCL expects its 2010 average coal price to hover between US$65-70 per tonne, lower than last year?s average price of $71.7 per tonne.

CEO Somyot Ruchirawat told reporters on Monday that the expected price decrease would be due to global economic condition. He did not give detail.

ITMG is planning to produce 23 million tones of coal this year from its Kalimantan coal mines including 2 million tones from South Kalimantan unit PT Jorong Barutama Greston, which operations was suspended by police due to allegation of violating forestry regulation. Last year ITMG produced 21.4 million tones.

Somyot said 86 percent of this year?s output has been contracted and 53 percent priced. ?We?re still looking for buyers for the remaining 14 percent,? Somyot said.

He added that of the 23 million tones planned production in 2010 its East Kalimantan units PT Indomico Mandiri will produce 13.2 million tones and PT Trubaindo 6 million tones.

Its other East Kalimantan unit PT Bharinto Ekatama will start production in the fourth quarter of this year with output of 200,000 tonnes in 2010, ramping up to 2 million tones the following years, Somyot said. (denny)