Indo Tambangraya to increase coal production next year
Kitadin, Bharinto set to produce 3.5 MT
Friday, August 6 2010 - 02:19 AM WIB
ITM's president director Somyot Ruchirawat said on Wednesday that the higher output target in 2011 will come from the company?s various mines including the Kitadin Tandung Mayang, which will start production early next year with an output target of 1.5 million tons; and Bharinto, which will start production in the fourth quarter of this year with an output target of 200,000 tons and output increase to 2 million tons in 2011.
The Trubaindo mining site will also see its output increase from this year?s estimated 6 million tons to 7 million tons in 2011.
ITM has allocated US$101 million in capital expenditure this year among others to finance the development of infrastructure faculties including a power plant at Indominco mining site, a washing plant at Trubaindo site; to increase the number of heavy equipments operating at the Kitadin Tandung Mayang site, as well as to develop the East Block project in Indominco.
Ruchirawat said that infrastructure facilities will also be built at the Kitadin Embalut and Bharinto mining sites.
He also expects that the average selling price of ITM coal products this year would be higher than last year?s average of $71.5 per ton, but he declined to give a figure. ?I can?t either predict what will be the price for next year. But I think the price for next will also be good,? he said.
ITM is convinced that it could book a sales volume of 23 million tons this year although one of its mine, the Jorong Barutama Greston mine, has seen a drastic output decline from 2 million tons to 1 million tons due to land use permit problem with the Ministry of Forestry.
?We?ll increase output at other mining sites such as Indominco or Trubaindo to fill in the deficit from Jorong,? Ruchirawat said.
On Feb. 11, 2010, the Jorong mining site was shut down by the police. But on July 31, ITM announced that it has managed to secure extension land use permit from the Ministry of Forestry, and would resume the operation of the Jorong mining site within two weeks' time.
ITM is also optimistic on meeting the sales volume target despite the current poor weather condition in Kalimantan. The company said it has no plans to announce a force majeure in the delivery of its coal products to its consumers.
For this year, Japan continues to be the firm?s main export market with export volume of 4.2 million tons, followed by China, with export volume expected to increase 20-25 percent from last year?s 3.1 million tons. Meanwhile, exports to India will decline to 1.2 million tons from last year?s 2.2 million tons.
ITM's director Edward Manurung told Petromindo.com that India prefers low rank coal, while ITM?s products are mostly medium to high calorie coal.
ITM has five subsidiaries including PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Bharinto Ekatama, PT Kitadin and PT Jorong Barutama Greston. ITM is controlled by Thailand?s BANPU Plc with a 73.72 percent interest, and the remaining shares are held by investing public. (denny)