Borneo Lumbung, Noble in coal sales deal

By Edgar Subroto

IDX-listed coking coal producer PT Borneo Lumbung Energi & Metal reported that it has signed coal purchase agreement with international coal trader Noble Resources Pte Ltd to market all coking coal production from its Central Kalimantan coal mine unit PT Asmin Koalindo Tuhup (AKT).

Under the deal, which was signed in August 2012, Noble will replace Glencore International AG, another international trader, to market all AKT coking coal production.

Borneo previously appointed Glencore as its marketing agent to sell its coal under three-year deal that started on July 23, 2009. Glencore acted as marketing agent to sell AKT coal around the globe except for few Japanese buyers.

AKT is targeting to produce around 4 million tons in this year. As of November this year, AKT has produced around 3.5 million tons of coking coal. The figure has passed last year?s total output at 3.3 million tons.

Editing by Er Audy Zandri