Bayan reports higher Q3 coal sales, price

Indonesia-exchange listed coal mining group PT Bayan Resources Tbk reported Friday its coal production volume and sales in the third quarter of 2010 reached 3 million tons and 3.2 million tons, respectively.

The coal production during the third quarter of this year, higher 3.4 percent than previous quarter of 2.9 million tons but slightly lower compared to last year?s corresponding period of 3.1 million tons.

?Improvement in 3Q10 was due to the increase in PIK production as machinery availability improved coupled with additional equipment mobilized by Buma. Coal production at GBP and TSA/FKP fell below revised budget primarily due to the bad weather condition which hampered mining operations,? the company said.

As of September, Bayan produced 8.6 million tons of coal.

Coal sales during the quarter, up 10.3 percent compared to the previous quarter of 2.9 million tons and equal compared to the same period of last year.

?Sales volume was lower than revised budget of 3.3-3.6 million tons due to low production volume caused by rainfall,? it said.

India remains Bayan?s biggest customer in terms of sales volume. Top customers year to date by sales volume are: J. Aron, Vitol, Enel, TNBF, Coal & Oil, and Bhatia

Average selling price during the quarter was US$79.9/ ton which was higher than previous quarter and last year?s corresponding period of $71.1/ ton and $64 / ton, respectively.

The company said that its full year 2010 committed sales was 13 million tons with average price at US$75.1/ tons in average calorific value of 5,834 (GAR).

The company?s cash costs during the quarter reached $60.3/ ton which were lower than previous quarter of $63.3/ ton.

Meanwhile, the company plans to spend $20-30 million in capital expenditure this year. As of September Bayan has spent $15.7 million. Bayan has several expansion projects, including the expansion of port at the coal mines of its coal unit PT Perkasa Inakakaerta, the construction of a 5-km belt conveyor at Tabang coal mine, the expansion of stockpile at its Wahana Baratama Mining coal mine.

Bayan operates eight coal mines in Kalimantan including PT Gunungbayan Pratama Coal, PT Perkasa Inakakerta, PT Wahana Baratama Mining and PT Kaltim Supacoal. (denny)

Coal Production by Mine Site (In million MT)	3Q10
	Budget	Actual
Gunungbayan Pratamacoal (GBP) Blk II & I	0.9 to 1.0	0.8
Teguh Sinarabadi (TSA) Firman Ketaun Perkasa (FKP)	0.5 to 0.6	0.4
Perkasa Inakakerta (PIK)	0.8 to 0.9	0.9
Fajar, Tabang, Brian (FTB)	0.4 to 0.5	0.4
Wahana Baratama Mining (WBM)	0.5 to 0.6	0.5
Total	3.1 to 3.6	3.0
Source: PT Bayan Resources Tbk