Berau says sales target unchanged despite slowing demand

East Kalimantan coal miner PT.Berau Coal said its 2009 coal sales production and sales target remained at 14 million tonnes despite softening demand from some of its buyers.

CEO Bob Kamandanu told reporters on Tuesday those customers in East Asian countries such as South Korea and Taiwan exercised option to reduce volume by 10 percent due to economic slow down. ?However, volume reduction of East Asian buyers is offset by increase in demand from India,? he said.

Berau sells 60 percent of its coal production to overseas market, mainly Asia.

Bob said Berau produced 3MT of coal in the first quarter of 2009, or 90 percent of the original target due to prolonged wet season at the mine. In second quarter the company will produce 3.7MT, Bob said.

Berau will produce 14.7 MT of coal in 2009.

Bob also said Berau reduced capital expenditure to US$14 million this year from $40 million originally planned due to global financial meltdown. Bob said the company would spend on improving stockpile capacity and haul road. (bernard)