Bumi ups 2008 coal price estimate
Wednesday, April 9 2008 - 04:21 AM WIB
The guidance price, which was disclosed on a presentation on Tuesday, was significantly higher than 2007 price of $44 per tonne in 2007.
Bumi is expected to sell 62 million tonnes of coal this year, up from 55.4 MT last year.
Meanwhile, Bumi is also expected to conclude this month 2008/2009-price negotiation with its major customers in Japan, where it sells some 25 percent of its output.
?We expect to be able to double benchmark price from $65 per tonne last year to $120-130 per tonne,? Senior VP Investor Relations Dileep Srivastava told Petromindo.Com. The benchmark contract is normally set for coal with gross calorific value of 6,322 (GAR) kilocalories per kilogram.
He was optimistic about the price increase as Australian coal producers that have concluded negotiation with Japanese buyers have reportedly able to get more than 100 percent price increase.
He said Bumi negotiating team would leave for Japan next week.(denny)
| Weighted Average Selling Prices | |||||
|
2003 |
2004 |
2005 |
2006 |
2007 |
|
| Prima | $29.0 | $39.5 | $58.5 | $57.9 | $59.3 |
| Pinang | $26.1 | $33.5 | $46.6 | $43.1 | $48.9 |
| Melawan | $19.6 | $28.1 | $34.0 | $31.1 | $34.8 |
| Senakin | $23.3 | $27.9 | $39.2 | $42.1 | $48.3 |
| Satui | $23.8 | $30.3 | $40.9 | $40.1 | $44.0 |
| Batulicin | $23.7 | $29.9 | $29.3 | $41.3 | $47.2 |
| ASPs (exc. Ecocoal) | $24.4 | $31.3 | $40.8 | $41.3 | $45.2 |
| Ecocoal | $14.9 | $19.6 | $21.1 | $22.4 | $21.1 |
| ASPs | $24.8 | $31.2 | $40.1 | $40.8 | $44.0 |
| Note: Average Selling Prices is based on FOB price before the government royalty | |||||