Borneo Lumbung under talks to supply coking coal to new steel producers
Thursday, February 2 2012 - 02:42 AM WIB
Indonesian listed coking coal producer PT Borneo Lumbung Energi & Metal Tbk has sent samples of hard coking coal to a number of domestic buyers of steel makers that plan to commence its operation this year.
The new steel producers showing interests in buying coking coal from Borneo Lumbung among others are PT Indoferro, PT Sebuku Iron Ores ( PT Silo), PT Gunung Garuda and Linfen Wanxinda.
?We have sent samples (of coking coal) to PT Indoferro that plans to start operation between April and May. The company (Indoferro) has expressed its interest with our product but it is still under negotiation. Hopefully, we could sign contract soon,? Marketing Director of Boneo Lumbung Ken Allan said.
In the first step, Indoferro needs the supply of 10,000 tonnes per month of coking coal from Borneo Lumbung before ramping it up to 40,000 tonnes per month in line with the company?s expansion programs.
Allan said that the Borneo and Indoferro were expected to sign the long term contract sales of between 1 and 2 years period.
Borneo Lumbung has also sent samples of hard coking coal to a mining and steel producer PT Silo which is slated to start producing the steel in the next three months.
PT Silo is eyeing the supply of 30,000 tonner per month, Allan said.
Allan said that Borneo Lumbung and PT Gunung Garuda and Linfen Wanxinda ? both are expected to commence operation next year ? were under the talks on the supply of coking coal.
Editing by Adianto P. Simamora