Bumi plc sees coal production to reach 140 MTPA in 2014

LSE-listed resources firm Bumi plc plans to increase production from its three mines in East and South Kalimantan by 80 percent to 140 million tonnes in 2014, banking on growing demand for thermal coal from Asian countries especially India.

The company revealed in its presentation filed on September 28, 2011 that its subsidiary PT Berau Coal will increase production to 30 MT in 2014 from 20 MT this year through development of infrastructures in its mine sites.

Its other East Kalimantan mine PT Kaltim Prima Coal is set to produce 70 MT in 2014 from around 40 MT targeted this year. Production increase will be achieved through development of various infrastructures such as overland conveyors, stacker reclaimer and barge loading facility, development of second shiploader and acquisition of mobile equipments.

The company?s South Kalimantan mine PT Arutmin Indonesia is set to produce 40 MT in 2014 from an estimated production of 21 MT this year. Incremental production will be achieved from expansion of Asam-Asam and West Mulia mine and also from development of Sarongga mine, which first coal shipment is expected to start next month. The company is also in the process of constructing continuous barge unloader system at its North Pulau Laut Coal Terminal with completion seen in November 2012.

According to the presentation, total capital expenditure needed to achieve production of 140 MTPA in 2014 would be around US$2.3 billion from 2011 to 2014.

Bumi plc, whose shares is controlled by the powerful Bakrie family controls the three mines through its 29.2 percent shares of IDX-listed firm PT Bumi Resources Tbk, which is parent company of Katim Prima Coal and Arutmin Indonesia and 85 percent stake at another IDX-listed firm PT Berau Coal Energy Tbk, which is a parent company of Berau Coal. (alex)