Borneo in talks of coal supply deal with new buyers

Indonesia-listed coking coal producer PT Borneo Lumbung Energi & Metal Tbk says it is negotiating a deal to sell its products from its mine under its subsidiary PT Asmin Koalindo Tuhup (AKT) in Central Kalimantan to two foreign buyers.

The company?s marketing director, Ken Allan, identifies the two potential buyers as Japanese steel maker Nisshin Steel and Turkey?s steel firm Erdemir Group. He said Friday the two firms were looking for around 1 million tonnes of coking coal per year between them.

Earlier, Ken had said Borneo Lumbung had signed a memorandum of understanding with IDX-listed PT Krakatau Steel to supply around 1 million tonnes of coking coal supply for a steel mill the firm is now building with South Korea's Posco and another 500,000 tonnes to Krakatau?s own new steel mill.

Borneo Lumbung also expects its production to increase by around 30 percent to 4.6 million tonnes in 2012, from 3.5-3.6 million tonnes this year.(giok)