Harum on tracks to meet 2010 coal output, eyeing further coal mine

Indonesian newly-listed coal miner PT Harum Energy Tbk said on Wednesday that it is on track to meet the company?s 2010 coal output target of 7.4 million tons, the company?s president director said.

Ray A. Gunara said that coal output from January through June 2010 reached 3.7 million tons or 50% of total production target despite unfavorable weather condition. The company has yet to release yet figures for June-September period, Ray said.

He also said the company allocates around US$10 million to acquire coal mine in East Kalimantan. But he refused to give details.

Harum Energy operates several coal mining in Kalimantan including PT Tanito Harum and PT Mahakam Sumber Jaya (MSJ), PT Tambang Damai in East Kalimantan and PT Santan Batubara, a 50/50 joint venture between Clough?s 82 percent owned Indonesian subsidiary PT Petrosea and Harum Energy.

MSJ and Santan Batubara have been producing coal, meanwhile PT Tambang Batubara Harum will start commercial operation in next year.

This year, MSJ and Santan Batubara are expected to produce 5.2 MT and 2.2 MT respectively.

Santan Batubara, which is a 50/50 joint venture between PT Indika Energy?s unit PT Petrosea and Harum Energy.

Harum Energy floated 500 million shares or 24 percent of total share at Rp 5,200 per share during the initial public offering (IPO) yesterday.

Harum Energy is controlled by the Barki family. Harum Energy produced 5.8 MT of coal last year. (*)