Insani Baraperkasa to further boost coal output
Bags commitment to supply 500KT of coal to PLN
Tuesday, November 30 2010 - 01:46 AM WIB
IBP?s president director Pintarso Adijanto told Petromindo.Com that the company plan to gradually achieve the target. It will produce 3.5 million tons in 2011.
?Actually all the company?s mining blocks, which total 17 are ready to produce coal but some of the blocks still need land-used permit from the ministry forestry to start production,? he said.
The company has targeted to produce 2.2 million tons with the coal sourced from five blocks.
The output is expected to further increase next year once another six blocks that is Tani Bakti, Tani Bakti Utara, Handil Bakti, Sambutan, Separi, Perangat will start producing next year, comes on stream, bringing he company's producing block to 11.
He also said IBP will start coal supply of 500,000 tons to state-power utility PT Perusahaan Listrik Negara (PLN) starting next year. He did not mention the price of the contract
This year, IBP has bagged a 4-month contract to supply 120,000 tons to PLN?s coal-fired power plant in Embalut, East Kalimantan starting September this year.
The company said that accumulative coal production and coal sales from January to September was 1.57 million tons and 1.47 million tons, up significantly from 765,000 tons and 665,000 tons in the same period of last year, respectively.
IBP exports 96 percent of its coal with China absorbing 58.1 percent of the coal, followed by India (29.8%) and South Korea (6.1%).
He predicts next year the company's average selling price will be better compared to this year's price of around US$48 per ton. But he did not give details.
IBP is a coal contract of work (CoW) holder. It coal deposit has CV ranging from 5,200 to 6,300Kcal/kg (ADB). (denny)