IBP sees significant increase in 2011 coal price, production

East Kalimantan coal mining firm PT Insani Bara Perkasa (IBP) expects 2011 average price to reach US$ 59.8 per tonne, higher than last year?s average price of $48.1 per tonne last year.

Parent company PT Resources Alam Indonesia revealed in a presentation made available at the Indonesian Stock Exchange on Wednesday that the higher price likely to be clinched this year was due favorable market condition and the signing of long-term contracts.

IBP?s coal sales is also expected to be significantly increased to 3.5 million tonnes this year from 2.2MT last year as the company is opening new blocks and increasing production from the existing block.

IBP also expects production cost to slightly increase in 2011 to $28.4 per tonne from $24.5 per tonne last year.

IBP exports 95 percent its coal production, 90 percent of which sold to China and India.

IBP sells coal with CV ranging from 5,100 kcal/kg to 6,000 kcal/kg.

IBP operates a CCoW concession in Kutai Kartanegara regency with an area of 24,000 hectares. (alex)