IndoMet supplies coking coal to Tata Steel

Petromindo|Khalsa

IDX-listed coal giant PT Adaro Energy Tbk said it has secured contract from India?s Tata Steel to supply soft coking coal from its IndoMet coking coal project in Kalimantan.

Adaro President Director Garibaldi Tohir was quoted by Bisnis Indonesia as saying Friday that IndoMet will produce around 1 million tons of soft coking coal this year, and it has been contracted to Tata Steel. ?There has been order for the 1 million tons production from Tata Steel,? he said.

Adaro owns 100 percent shares in the IndoMet coal project after acquiring a 75 percent stake from BHP Billiton in October of last year. Adaro allocates US$250 million in capital expenditure this year, about half of which to be allocated for the IndoMet project to finance development of new infrastructure facilities and exploration activities as the company seeks to ramp up production in the future to meet growing demand for coking coal, used in steel production. The IndoMet project started production last year, but limited to soft coking coal.

?I?m confident that demand for coking coal will be high in line with infrastructure development which will stimulate the domestic steel industry,? Garibaldi said.

The IndoMet coking coal project comprises of several concessions in Central and East Kalimantan run by several firms including PT Maruwai Coal, PT Juloi Coal, PT Kalteng Coal, PT Sumber Barito Coal, PT Lahai Coal, PT Ratah Coal, and PT Pari Coal. (*)