Bayan lifts force majeure

IDX-listed coal mining group PT Bayan Resources Tbk said that it had on Monday lift force majeure status on its South Kalimantan subsidiary PT Wahana Baratama Mining (WBM).

The Company said that WBM is now trying to operate normally and the flooding had gradually subsided to the level that allow it to resume activities at the eastern and western part of the mine.

The Company announced force majeure on July 27, 2010 on its supplies to trading firm Vitol Asia Pte. Ltd.

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. (alex)