Insani Baraperkasa expects higher coal output

By Edgar Subroto

IDX-listed firm PT Resource Alam Indonesia aims to increase coal output from coal mine unit PT Insani Baraperkasa (IBP) in East Kalimantan this year despite the current low price of the commodity.

The company has set a target to produce around 4.5-5 million tons of coal this year, up from last year?s total production of 4.19 million tons, a company official told Petromindo.com.

The company?s sales volume is also projected to increase to around 4.5-5 million tons from last year?s total sales of 4.15 million tons, although it?s actually down 3.5 percent compared to the company?s initial target due to market slowdown and lower coal price.

Average selling price in 2012 reached US$52.58 per ton, down 11.2 percent from the previous year. About 76 percent of IBP coal is sold to China and the remaining to South Korea and India.

Editing by Reiner Simanjuntak