Harum to increase 2011 coal production, price

Indonesian-listed coal miner PT Harum Energy Tbk vows to produce 10.5-10.7 million tonnes of coal in 2011, higher than its production of 7.4 million tonnes last year, the company?s director said on Tuesday.

Eddy Sumarsono told reporters in Jakarta the rise in coal production target was resulted from increasing coal production of its three subsidiaries in East Kalimantan.

PT Mahakam Sumber Jaya (MSJ) is expected to produce 7.5 million tonnes, up from 5.3 million tonnes in 2010, PT Santan Batubara is targeted to produce 2.5 million tonnes, higher than last year?s production of 2.1 million tonnes and PT Tambang Batubara Harum (TBH), which is scheduled to start commercial production in Q3 this year, will produce around 500,000-750,000 tonnes, Eddy said.

Harum also hopes to raise average selling price to US$80 (FOB) per tonne from last year?s realized average price of $75 per tonne.

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

TBH mine is located near Sangatta, in East Kutai regency. The mine has calorific value of 5,400 kcal/kg (GAR). (denny/giok)