ITM commits to supply 70 million tonnes of coal to its clients

Indonesia-listed coal group PT Indo Tambangraya Megah Tbk (ITM), an Indonesian coal unit of Thai energy firm Banpu reported that as of June 2011 the group has secured commitments to sell 69.7 million tonnes of coal to its various buyers for the period from 2011 to 2021.

The coal will be periodically delivered from this year to 2021, the company said on Thursday.

For this year the company?s clients include Enel Trade SpA, Adani Global, The Hongkong Electric Co, Ltd, Formosa Plastic Group, Marubeni Corp, TNB Fuel Services Sdn. Bhd, Korea East West Power and EPDC Overseas.

According to the company?s data, as of June 30, 2011, the company has coal reserves totaling 360.74 million tonnes with its five coal mine subsidiaries operating in East and South Kalimantan, namely: PT Indominco Mandiri, PT Jorong Barutama Greston, PT Kitadin, PT Trubaindo Utama and PT Bharinto Ekatama.

Out of the five coal mining units, only PT Bharinto that is still awaiting approval from government to enter into production stage. Bharinto is expecting to start production in the fourth quarter of this year with an output target of 200,000 tonnes.

ITM produced 11.23 million tonnes of coal during first half of this year, of which Indominco produced 6.76 million tonnes, Trubaindo 3.14 million tonnes, Kitadin 590,000 tonnes and Jorong 742,000 tonnes.

ITM plans to produce 25 million tonnes of coal this year, up 2 million tonnes from 23 million tonnes last year. (denny)