Bayan declares force majeure on E. Kalimantan coal mine

IDX-listed coal producer coal mining group PT.Bayan Resources said on Tuesday its East Kalimantan coal mining unit PT. Gunungbayan Pratamacoal has declared force majeure on its supplies to buyers after the mine experienced heavy rainfall and flooding since early this month.

Bayan has declared force majeure to its customers, including Malaysian power firm TNB Fuel Services Sdn Bhd and trading firm Enel Trade S.p.A , the company said in statement.

?Heavy rainfalls have disrupted transportation activities from the mine to Manau jetty port and from the jetty port to Balikpapan Coal Terminal, forcing us to declare temporary force majeure to our customers since April 19, 2010,? it said.

Bayan Resources, which is the 8th largest coal producing group in Indonesia, has eight mining subsidiaries, including Gunungbayan, which operates a coal mine in West Kutai regency.

Bayan Resources plans to produce 13-15 million tons of coal from its mines in East Kalimantan and South Kalimantan this year, up from around 10 million tons in 2009. (denny)