Berau targets 23 million tons coal output

By Er Audy Zandri

PT Berau Coal, Indonesia's fifth largest coal producer and part of Bumi Plc, has stated that its recorded sales throughout 2011 reached 20 million tons, partially helped by the completion of construction projects throughout the year.

These projects include the construction of a major new conveyor at Binungan, as well as upgrading of existing coal handling facilities such as its barge loaders and crushers at the Lati coal handling facilities. Construction of a new crushing line and a new stockpile was also completed during the year.

Berau Coal has a coal mining concession of 1,200 square kilometer in three locations in East Kalimantan, namely Lati, Binungan, and Sambarata.

The opening of new pits (Lati East 2, Binungan pit H Blok 7 East; Parapatan) due to the rise of coal price, helped increased its production, while Berau's average selling price for the year went up to US$81.4/ton from US$59.6/ton in 2010.

Production cost of sales was at US$38/ton (2010: US$29.1/ton), while the average stripping ratio for the period was 9.5 bcm/ton (2010: 8.2 bcm/ton).

In terms of sales by destination, 49 percent of Berau?s sales went to mainland China, 14 percent to Taiwan and 22 percent to the rest of Asia, with the remaining 15 percent sold domestically.

A new JORC report published in June 2011 shows total reserve, increased by 35 percent to 467 million tons at 31 December 2010, from 346 million tons at 31 December 2009. The investment in Chateau remains in the books of Berau under Indonesian GAAP, at US$47 million.

Bumi Plc has stated in its full year financial report that it plans to allocate US$260 million of capital expenditure for the company this year.

Earlier in January, Berau Coal Energy's President Director Rosan P. Roeslani stated that the company plans to allocate up to US$691 million of capital expenditure this year to expand conveyor belt, develop power plant, intensify explorations and increase production.

Berau has managed to increase its production by 12 percent to 19.4 million tons in 2011, targeting up to 23 million tons of coal output this year.

Editing by David Mustakim