India?s Knowledge in price negotiation to buy 500 kt a year of coal

Indonesia-listed firm PT Dayaindo Resources International Tbk said that it is negotiating coal price for 500,000 tonnes of coal supply a year to Indian coal trader Knowledge Infrastructure Systems Pvt, Ltd.

The company said that the contract will be signed for 3-year contract and can be extended for another 3 years. Dayaindo will supply coal to Infrastructure with calorific value of 5,600 ? 5,800 kcal/kg (GAR).

Dayaindo will sell the coal on FOB basis but it did not give further details.

The company has a coal mine in Tanah Bumbu regency, South Kalimantan operated by subsidiary PT Daya Mandiri Resources Indonesia, formerly PT Risna Karya Wardhana Mandiri. The firm also have ties with other Kalimantan miners under joint operation cooperation.

Dayaindo Mandiri is also engaged in coal trading.

Dayaindo sold 3.05 million tonnes of coal during 2010, a jump from 1.06 million tonnes in the previous year. Of the total, only around 13.65 percent was sourced from its own mine with the rest coming from third party. (denny)