Berau Coal to increase exploration expenditure to boost output

East Kalimantan coal miner PT Berau Coal is expecting to spend US$4 million for exploration and evaluation activities this year, higher compared to last year?s expenditure of $3 million, to boost the company?s coal output.

Berau Coal plans to produce 20 million tonnes and 23 million tonnes in 2011 and 2012, respectively, up from 17.4 million last year.

Berau Coal expects additional coal production from Binungan block to be barged from Suaran port directly to customers or to the transhipment area beginning in 2011, particularly with mining at Blocks 1 and 2 expected to start by 2013 and at Parapatan in 2011.

Binungan has several blocks, called Parapatan, Blocks 1 and 2, Blocks 3 and 4, Blocks 5 and 6, Block 7 West, Block 7 East and Block 8 (Kelay). In 2010, coal production from Binungan block reached 4.2 million tonnes.

At present, the main contractors for those blocks are PT Bukit Makmur Mandiri Utama (Buma) and PT Saptaindera Sejati (SIS), which just conducted mining activity at Block 1-4

Total measured reserve at Binungan block is 111 million tonnes with calorific value between 4,800-5,920 kcal/kg (GAR).

Besides Binungan, Berau has other main blocks called Lati and Sambarata. Lati block produced 10.4 million tonnes of coal and Sambarata block produced 2.8 million tonnes during 2010.

Berau?s, sales volume for the first quarter 2011 was 4.6 million tonnes, an increase of 16.4 percent from the first quarter of 2010, and average sales price was $74.32 per tone, an increase of 31.7 percent over the first quarter of 2010.

During 2010, Berau?s average selling price reached $59.6 per tonne. (denny)

	2009 Open Cut Coal Reserves (in million tonnes)		2010 Production (in million tonnes)	Estimated 2010 Coal Reserves (in million tonnes)
	Proved	Probable		Proved	Probable
Lati	59	92	10.4	49	92
Binungan	52	91	4.2	48	91
Sambarata	35	18	2.8	32	18
Total	146	200	17.4	129	200