Coal Fe?s JV output down
Thursday, November 1 2012 - 08:05 AM WIB
ASX-listed Coal Fe Resources Limited said that the output of its joint mine management partner PT Toba Jaya during the third quarter of this year has dropped, from 57,071 tons of coal in the previous quarter to 31,720 tons this quarter from its concession in Kutai Kartanegara, East Kalimantan.
The coal was sold to Indonesian national electricity company PLN, delivered onto barges anchoraged at the private jetty of PT Pancaran Surya Abadi with transaction prices within the range of US$22-27 per ton.
Coal Fe and Toba Jaya entered into a joint venture and mine management agreement in April 2009.
?As provided in the joint mine management agreement between the company and Toba Jaya, these coal sales translate into a royalty of USD1.00 per ton for the company,? it said in the quarterly report.
The quarter also marked the delivery of five Nissan 20 ton overburden dump truck units to step up production. Despite its ramp up plan, the company said that coal production will be maintained at a minimum level for the time being catering mainly to the domestic market as export prices remain bearish.
"Works on overburden stripping at the mine site will be on going albeit at a slower scale. This will enable the coal production to be increased swiftly in the event of a positive change in coal prices," the company said.
Editing by Er Audy Zandri