IBP on track to reach 2010 coal production target

East Kalimantan coal miner PT Insani Baraperkasa (IBP), a subsidiary of Indonesia-listed firm PT Resources Alam Indonesia Tbk (RAIN) is on track to meet its production target for this year at 2.85 million tons, a company official said.

?Although the weather condition has not been favorable lately in the mining site, we?re confident to meet our target,? RAIN investor relations head Wimpy Salim told Petromindo.com on Friday.

IBP produced 1.008 million tons of coal in 2009.

Wimpy said the increase in production this would come from three new pits, making the company?s coal production to come from six pits.

Coal output as of May has reached 800,000 tons, he said.

The company expects average coal price this year to be more stable compared to last year. ?Our revenue will increase with the increasing coal output and average coal price will be around US$60 per tons for this year,? he said.

IBP exports 92 percent of its coal with India as the biggest market absorbing 41 percent of the production, followed by China (27.6%) and South Korea (15%).

IBP is a coal contract of work (CoW) holder with CV ranges from 5,200-6,300Kcal/kg (ADB). (denny)