Holcim, Lanna in coal supply deal

IDX-listed cement marker PT Holcim Indonesia Tbk said it has signed a Coal Supply Agreement with East Kalimantan miner PT Lanna Harita Indonesia (LHI) on December 11, 2009.

Under the deal, LHI will supply 104,500 tonnes of coal from January to December 2010 with CV of 4,200 kcal/kg (AR).

Holcim will pay US$44 per tonne CIF for Lanna?s coal delivered to Tanjung Priok port in Jakarta, the company said.

LHI is a unit of Thai firm Lanna Resources PCL.

Holcim said Lanna?s coal would be used to make up supply shortage from its three main suppliers namely: PT Kideco Jaya Agung, PT Adaro Indonesia and PT Padangbara Sukses Makmur, which together have supplied 850,000 tonnes of low CV and 740,000 tonnes of medium CV to the company, or 94 percent of its annual coal requirement.(denny)