Berau Coal seeks to increase export to India, China

East Kalimantan coal miner PT. Berau Coal plans to increase export by 1 million tonnes next year with India and China market as main target, a company official said on Monday.

This year Berau will export 70 percent of its 11 million tonnes (MT) production to India, Taiwan, China and other smaller markets, director Tria Suprajeni told petromindo.Com. Next year, Berau will increase production by 1 MT, which will be designated to meet increasing demand in India and China, he said. ?India is already Berau?s top foreign buyer,? he said. Berau expected to increase coal export to India from 1.2 MT this year to 2 MT in 2007, he said. Coal export to China will be increased from below 1 MT to 1.5 MT, he said, adding that talks had been ongoing with Indian and Chinese buyers on volume increase.

Tria said Berau currently has production capacity of 15 MT, and therefore there was room for more spot order. ?Berau currently has 3 MTPA of spare capacity which could be utilize to serve spot market.?

Tria said Berau sold 40 percent of its production in spot market and would like to see the number decline to 20 percent in the next few years. ?Berau is trying to clinch more long-term deal,? he said.

Domestically, Berau supplies coal to Suralaya power plant, Java Power?s Paiton power plant and is in talks to supply coal to Tanjung Jati B. (alex/godang)