Golden Energy secures 4 million tonnes of sale contract

IDX-listed coal producer PT Golden Energy Mines Tbk (GEMS), a company controlled by Dian Swastatika Tbk, has secured a sale contract of 4 million tonnes representing 40 percent of the company?s targeted total sales of 10 million tonnes in 2012.

Of the contract, Golden Energy would supply about 1 million tonnes of coal to GMR Infrastructure in India, an infrastructure enterprises owning 30 percent stakes in GEMS.

?We will ship between 2 million and 3 million tonnes of coal to ( buyers) in China, Thailand and India,? Golden Energy?s President Director Fuganto Widjaja said as quoted by Investor Daily.

He said that the company was still negotiating with a number of buyers for the remaining 4 million tonnes of coal.

?We are optimistic to reach the sale target of 10 million tonnes,? he said, adding that the sale price was expected to stand between US$65 - $75 per tonne.

The company sold some 5.5 million tonnes of coal last year.

GEMS President Commissioner Lay Krisnan Cahya said that the company would boost production to meet the expected increase of coal sales this year, but saying that the company has no plan to acquire coal mining to ramp up its production.

Golden Energy said that it would allocate US$150 million of capital expenditure for the next three years. (*)