Bayan lifts force majeure on E. Kalimantan coal mine

Indonesia-listed coal mining firm PT Bayan Resources has lifted force majeure declaration on coal supplies from its East Kalimantan mining unit PT Gunungbayan Pratamacoal as the latter is no longer facing problems in transporting its coal.

?The flooding has subsided in the company?s haul road and water volume in the river is also decrease,? Bayan Resources said in a statement on Tuesday.

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

?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,? Bayan said on April 27.

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)