Harum?s Q1 coal production, ASP increase

Indonesia-listed coal miner group PT Harum Energy Tbk reported that its coal production and sales during first quarter of this year increased by 17 percent and 18 percent to 2 million tonnes and 2.3 million tonnes, compared to the same period of last year, respectively.

The company said the coal is sourced from its two production coal mining units PT Mahakam Sumber Jaya (MSJ) and PT Santan Batubara (SB), both based in East Kalimantan. MSJ produces 1.6 million tonnes of coal during the first quarter of 2011, up from 1.1 million tonnes in the corresponding period of last year, while SB produced 400,000 tonnes during the quarter, down from last year?s first quarter production of 600,000 tonnes.

MSJ and SB sold 1.9 million tonnes and 400,000 tonnes during the first quarter of 2011 versus 1.4 million tonnes and 500,000 tonnes in the first quarter of 2010, respectively.

SB is a 50/50 joint venture between Indonesia-listed energy firm PT Indika Energy?s subsidiary PT Petrosea and Harum Energy.

Harum Energy is planning to produce 10.5-10.7 million tonnes of coal in 2011, higher than its production of 7.4 million tonnes last year. MSJ is expected to produce 7.5 million tonnes, up from 5.3 million tonnes in 2010, SB is targeted to produce 2.5 million tonnes, higher than last year?s production of 2.1 million tonnes.

The company?s average selling price (ASP) in the quarter is also increased by 36% to US$88.4 per tonne. In full-year 2010, the company's ASP was $75.7 per tonne.

The company?s main export destination during the first quarter of this year is South Korea which accounting for 40 percent of the total sales, followed by China (25%), Taiwan (14%), India (8%), Japan (6%. The company sold around 7 percent of its output to domestic market.

In 2010, the company?s biggest export market is China.

The company is planning to spend $30 million in working capital in this year. The capital will be used for upgrading the company?s haul road, building the fourth crusher to boost the capacity of the crushers to 20 million tonnes and building port facility in the company?s other coal mine PT Tambang Batubara Harum (TBH), which also located in East Kalimantan.

TBH, which is scheduled to start commercial production in third quarter of this year, will produce around 500,000-750,000 tonnes. TBH mine is located near Sangatta, in East Kutai regency. The mine has calorific value of 5,400 kcal/kg (GAR).

As of march 2011, the company has spent $8 million of working capital, especially for payment of two sets of tugs & barges, which the company bought through its shipping firm PT Layar Lintas Jaya, the company added. (denny)