ITM to sell 7mt of coal to china
Tuesday, September 25 2012 - 09:03 AM WIB
PT Indo Tambangraya Megah Tbk (ITM), an Indonesian coal unit of Thailand's top coal miner Banpu Plc recently stated the company aims to sell up to 7 million tons of coal to China, increasing about 1.2 million tons from its allocation last year of 5.8 million tons, a source in the company told Petromindo.Com
Despite recent trend of downward demand and tougher price negotiations, amidst the drop of coal prices, China remains ITM's key market this year, the source said.
ITM believes that the target will be achieved. "The company still have cargoes for spot buyers," he said, not stating how much coal is sold to China from ITM until August.
Earlier, Banpu said that its Indonesian coal operation delivered sale volume of 6.62 million tons in the second quarter of 2012, a 16 percent higher compared to the previous quarter.
"The softening coal market prices since early this year resulted in a lower average selling price for Indonesia to $94.21 per ton, decreasing 6 percent quarter on quarter period," it said in a statement.
Banpu operates five producing mines in Indonesia through ITM, namely Indominco Mandiri, Kitadin and Kitadin Tandung Mayang and Trubaindo, all of which are located in East Kalimantan, and Jorong Barutama Greston in South Kalimantan.
It said that the less favorable coal market outlook would continue to be a challenge for the average coal selling price of its Indonesian operation over next few quarters.
"Nevertheless, the flexibility to adjust operating cost as provided by open-pit mining will make Indonesian operation relatively immune to coal prices fluctuation," it said.
Editing by Er Audy Zandri