ITM secures 51% of coal sales for this year

By Tri Subhki R

IDX-listed coal mining company PT Indo Tambangraya Megah Tbk (ITM) has secured buyers as well as prices for 51 percent of around 30 million tons of coal it plans to sell this year. In 2014, the company sold 29 million tons of coal, mainly to China (23 percent) and Japan (20 percent).

?Prices of 51 percent of all coal to be sold this year have been fixed, and prices of 19 percent of them will be determined by index price upon delivery. Meanwhile, prices of 13 percent of the coal are still under negotiation, and 17 percent of them remain unsold or open for negotiation,? ITM?s Director Edward Manurung said.

Edward also said the company has set its coal production target for this year to 29.5 million tons, slightly higher than the realized production of 29.1 million tons in the previous year. Indominco will contribute the largest share of coal production at 15 million tons, while the second largest contributor is Trubaindo at seven million tons.

ITM has five producing coal concessions namely PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Bharinto Ekatama, PT Kitadin (Embalut and Tandung Mayang) and PT Jorong Barutama Greston.

Editing by Johannes Simbolon