CNKO to start coal exports to China next year

IDX-listed mining company PT Exploitasi Energi Indonesia Tbk (CNKO) plans to start coal exports next year following the signing of export agreement with Chinese company Huadian Power International Corporation Limited recently, Kontan reported on Thursday.

CNKO President Director, Henry Halomoan Sitanggang, said in Jakarta the export to China would be the first for the company, which at present, sold its coal to local buyers, mostly to state owned electricity company Perusahaan Listrik Negara (PLN).

The first shipment for export will be carried out in January. The total export volume will not be higher than those to PLN which is expected to reach 3.1 million tons next year,? he was quoted as saying.

At present, CNKO buys coal from other mining companies to meet its sales commitment. ?Next year, we will begin production at our own mines with production level of 1.2 million tons, but we still need to buy from other miners to meet sales commitment,? he said.

According to him, the price of coal to be sold to the Chinese will be about US$50 per ton, almost the same with those sold to PLN. (*)