Berau?s production below target in second quarter

PT Berau Coal Energy Tbk failed to meet its production target in the second quarter of this year because of bad weather during the period, Kontan business daily reported Friday.

Berau?s spokesman Bintoro Prabowo said in Jakarta on Thursday that the company?s coal production only reached 4.91 million tonnes in the second quarter or about 96 percent of the initial target because of too many rains during the three-month period.

But he said that the production during the second quarter of this year was higher than 4.14 million tonnes recorded in the same period, last year. Although the production was below the target in the second quarter, the company said it was upbeat the full year target could be achieved.

Berau, the fifth largest coal producer in Indonesia, is targeting to produce 20.3 million tonnes of coal this year, up from 17.38 million tonnes in 2010.

Bintoro said that the realized sales during the second quarter reached 5.04 million tons, a 21.4 percent increase from the level recorded in the same period, last year.

The company?s president director Rosan, P. Roslani said earlier that the company would not face difficulties to meet sales target of 20.1 million tons this year because 97 percent of them would be sold as part of long-term contracts to both local and overseas buyers. (*)