Borneo Lumbung expects lower coking coal price in H2
Monday, June 13 2011 - 01:40 AM WIB
Marketing Director Ken Allan said the company is planning to sell around 70 percent of this year?s total production under long-term supply deals. The company is expecting to produce 3.6 million tonnes of coal this year.
?At present, we only sell 1 million tonnes of coking coal under long-term deal,? he said.
The company is targeting average selling price for this year at about US$220-240 per tonne. During first quarter of this year, however, the company booked an above-target average selling price of $275 per tonne, he said.
The company predicts that average selling price during second quarter of the year will be around $250 per tonne, but the price will be lower in the third and fourth quarter, he said without giving any figures.
Ken said that the company is not selling its coking coal to China due to lower price. It has started to sell it coking coal to South America and Germany, he said.
The company has recently bagged 120,000 tonnes per year of coking coal under 3-year contract with Taiwan's China Steel Corp. ?If China Steel wants more coking coal, we are ready to supply on spot term,? Ken said.
Ken also said that the company is eyeing domestic buyers, including Banten-based private steel maker PT Indoferro.
The company plans to spend around $200 million in capital expenditure (capex) to boost production to 4.6 million tonnes in 2012, Ken added (giok)