Bayan declares force majeure on S. Kalimantan coal mine
Tuesday, July 27 2010 - 08:37 AM WIB
IDX-listed coal producer coal mining group PT.Bayan Resources said on Tuesday its South Kalimantan coal mining unit PT. Wahana Baratama Mining (WBM) has declared force majeure on its supplies to trading firm Vitol Asia Pte. Ltd
The mine experienced heavy rainfall and flooding since July 17, the company said in statement.
Bayan did not give further detail.
WBM has a third generation coal contract of work signed on Nov. 20, 1997 to operate a 7,811 Ha concession in Satui. Bayan has 100 percent shares in WBM.
WBM is expected to produce 4-4.5 million tons of coal this year, up compared to last year?s production at 2.9 million tons.
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)