Bumi Resources? 1H coal output, sales slightly lower
Berau coal output increases by 41%
Thursday, August 18 2011 - 02:17 AM WIB
Bumi Resources? coal sales reached 29.1 million tonnes during 1H 2011, also down compared to the same period last year of 31 million tonnes.
Bumi Resources? first half sales were split 95% contracted priced and 5% contracted unpriced. In terms of sales by destination, 21% of the sales went to Japan, 15% to India, 13% to China, 27% to the rest of Asia, 8% to Europe, and 16% domestically within Indonesia, Bumi said.
Average selling price for the period was $91/tonne, an increase of 36% over the previous period, the company said.
Production costs at Bumi Resources were $45/tonne against $36/tonne in the previous period. Higher fuel and contractor costs along with an increase in the stripping ratio were the principal reasons for the increase in production costs. The stripping ratio for Bumi Resources of 12.0 was 16% higher than the prior period due to the opening of additional pits at the KPC mine, as well as due to high levels of rainfall, which required a change in the mining plan. The stripping ratio is expected to fall over the rest of the year as weather conditions improve and more coal is mined.
Kaltim Prima Coal (KPC)
The largest operation within PT Bumi Resources is Kaltim Prima Coal (KPC), which operates in east Kalimantan. KPC's two mines are Sangatta and Bengalon. The Sangatta mine is close to the port facilities at Tanjung Bara, which is linked to the mine by an overland conveyor. The Bengalon mine is also close to the coast, being linked to its port facilities by a haul road.
KPC produced 18.3 million tonnes of coal in the first half, a slight decrease over the prior period. The second quarter production in 2011 of 10 million tonnes represented a 21% increase over the first quarter production. KPC's average selling price of $97/tonne was 36% higher than the first half of 2010.
Production costs of coal mined at KPC were $47/tonne against $39/tonne in the prior period. The main reasons for the increase were a higher stripping ratio, greater distances from the coal mine to the coal processing plant, higher fuel costs, and higher contractor costs. The average stripping ratio for the period was 13.2, and is expected to decrease in the second half of the year.
Arutmin
PT Bumi Resources' second largest mine, Arutmin, operates in a concession area in the southeast of Kalimantan and has five operations, all strategically located near Arutmin's port facility, North Pulau Laut Coal Terminal.
Arutmin produced 11.5 million tonnes of coal in the first half, slightly higher over the prior period. Arutmin's average selling price of $81.5/tonne was 32% higher than the first half of 2010.
Production cost of sales at Arutmin were $40/tonne against $33/tonne in the prior period. The increase is mainly due to a combination of the higher stripping ratio and higher fuel costs.
The average stripping ratio for the period was 10.2. The increase in the stripping ratio is mainly due to higher levels of rainfall, resulting in flooding, which led to coal being mined in alternative areas with a greater amount of overburden compared with the prior period, as well as new pits being developed.
Bumi is also reported its 85% ownership in PT Berau Coal Energy, a parent company of East Kalimantan coal miner PT Berau Coal
PT Berau Coal
PT Berau's assets are located in the northeastern part of Kalimantan and consist of three operating mines, namely Lati (which is the largest mine accounting for circa 60% of PT Berau's output), Binungan and Sambarata.
PT Berau recorded a strong operating performance for the first half of 2011. Despite high levels of rainfall PT Berau produced 9.0 million tonnes of coal, a 41% increase over the prior period, and recorded sales of 9.6 million tonnes of coal.
PT Berau's average selling price for the period was $75/tonne. Production costs at PT Berau were $35/tonne. The increase from the prior period is mainly due to an increase in the stripping ratio, greater haulage distances (between the coal mined and the coal processing plant), higher fuel costs, and higher contractor costs. The average stripping ratio for the period was 9.5.
In terms of sales by destination, 36% of sales went to China, 16% to Taiwan, 11% to India and 21% to the rest of Asia, with the remaining 16% sold domestically into Indonesia. PT Berau's first half sales were split 77% contracted priced, 20% contracted index-linked and 3% contracted unpriced.
In terms of PT Berau's coal reserves, a new JORC report published in June 2011 showed total reserves increasing by 35% to 467 million tonnes from 346 million tonnes. (denny)
| Summary of key data | 30 June 2011 |
30 June 2010 |
| Berau | ||
Coal mined (millions of tonnes) |
9.0 |
6.4 |
| - Lati | 5.1 | 3.8 |
| - Binungan | 2.0 | 1.7 |
| - Sambarata | 1.9 | 0.9 |
| Sales (millions of tonnes) | 9.6 | 8.2 |
| FOB average selling price ($/t) | 74.6 | 56.0 |
| Production cost of sales ($/t) | 35.4 | 30.6 |
| Stripping ratio (bcm/t)1 | 9.5 | 8.2 |
| KPC | ||
Coal mined (millions of tonnes) |
18.3 |
19.0 |
- Sangatta |
16.4 | 16.7 |
| - Bengalon | 1.9 | 2.3 |
| Sales (millions of tonnes) | 18.6 | 18.8 |
| FOB average selling price ($/t) | 96.8 | 71.1 |
| Production cost of sales ($/t) | 47.3 | 38.8 |
| Stripping ratio (bcm/t)1 | 13.2 | 12.1 |
| Arutmin | ? | ? |
Coal mined (millions of tonnes) |
11.5 |
11.3 |
| - Senakin | 2.4 | 2.9 |
| - Satui | 1.9 | 2.4 |
| - Batulicin | 1.6 | 1.1 |
| - Mulia | 2.6 | 2.2 |
| - Asam-asam | 3.0 | 2.7 |
| Sales (millions of tonnes) | 10.5 | 12.2 |
| FOB average selling price ($/t) | 81.5 | 61.9 |
| Production cost of sales ($/t) | 40.3 | 32.9 |
| Stripping ratio (bcm/t)1 | 10.2 | 7.4 |
| Note: 1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined. | ||