Baramarta misses 2009 coal production target

South Kalimantan coal miner PD Baramarta has produced 3.25 million tons (MT) in 2009, lower compared to the company?s production target of 4 MT due to softening demand.

A company official, who wanted to remain anonymous, told Petromindo.Com on Tuesday that the company?s sales stood at 3.26 million tons in 2009, down approximately 10 percent from the same period of last year.

The official said the October-December, 2009 production reached 710,800 tons, lower around 8 percent compared to the same period of last year.

This year, the company sets production target at 3.5MT with coal sales at 3.25 MT, the official said.

The official said that the company currently is in negotiation on coal supplies with PT Perusahaan Listrik Negara (PLN). ?The central government told us (Baramarta) to allocate 24 percent of total production for the domestic market. If the price is not good, we will not supply to PLN.?

This is the first time Baramarta will supply to PLN. The negotiation is expected to conclude in mid-February, the official added.

Baramarta sells its entire coal through traders PT Prima Multi Minerals and PT Prima Multi Trada under 5-year contracts that will end in 2011. The company negotiates its coal price annually.

Baramarta produces coal with a CV content of around 6,300-6,500 Kcal/kg (ADB). (denny)