ITM expects to realize selling price average nearing $100 per tonne this year

Indonesia-listed coal mining firm PT Indo Tambangraya Megah (ITM) said that it expecting to exceed its average selling price (ASP) target to US$95-97 per tonne from earlier target of $85-90 per tonne, the company?s director told Petromindo.Com.

The ASP rose by 10% to US$ 96.49 per tonne in the second quarter of this year compared to the previous quarter thanks to realization of higher contract price and resilient market trend. Last year the company?s ASP reached $74.9 per tonne.

The company?s CFO Edward Manurung said that despite ASP surpassing the company?s target, the coal output from ITM might be slightly down to only 24.5 million tonnes from the original target of 25 million tonnes this year. ITM's total output last year was 23 million tonnes

Continued rainfall in Q2 this year impacted one of ITM coal unit PT Indominco Mandiri, he said, adding that in Q3 and Q4 the production should improve thanks to favorable weather in the mines.

The company is targeting to produce around 26-26.5 million tonnes of coal next year, he said.

The company, which is a unit of Thai energy conglomerate Banpu Plc, has 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.

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. (denny)