BEK expects ASP $35 /mt of its coal

By Edgar Subroto

Singapore-based coal mining firm Geo Energy Resources is expecting to get average selling price (ASP) of around US$35 per ton for coal from its low CV coal mine unit PT Bumi Enggang Khatulistiwa (BEK) in West Kutai regency, East Kalimantan.

"We sell coal to our customers primarily on a FOB barge or ex-stockpile basis. Going forward, we intend to sell our coal produced from the BEK Concession Area on a FOB mother vessel basis," the company said.

BEK has started its coal production since February this year with CV 3,500 kcal/kg (GAR) and sulphur content of 0.5 percent, ash of 8 percent and TM of around 40 percent.

Earlier, Petromindo Source said that the company was looking for prospective buyers for its low CV coal. The company currently produces between 50,000 - 100,000 tons per month of low CV coal.

BEK covers 4,570 hectares of concession and has resources of about 20 million tons. Its first shipment was made in the mid 2012.

The company is targeting to produce 2.3 million tons for next year, triple from this year's target of 700,000 tons.

Editing by Adianto P. Simamora