ITMG eyes coal markets in Bangladesh, Myanmar

By Brigida Ernestina Elu Wea

IDX-listed coal mining company PT Indo Tambangraya Megah Tbk (ITMG) plans to export coal to Bangladesh and Myanmar this year as part of expansion of its coal markets particularly in Asia.

ITMG Marketing Director Jusnan Ruslan said on Wednesday the company aims to capitalize growing coal demand particularly in Asian countries which are quite aggressive in developing coal-fired power plants.

The company exports about 83 percent of its production, with the remainder sold in the domestic market. Its traditional export markets include China, India and Japan, which account about 60 percent of export, while other export markets include Thailand, the Philippines, South Korea, Taiwan, Italy, US, and Hong Kong.

?Asian countries are our main targets. Many of developing countries in Asia utilize coal (for power plants), so it is quite prospective,? Jusnan said. ?Last year, coal demand in China fell, but we?re optimistic demand for Indotambang?s coal remains strong because we have good quality coal,? he added.

Jusnan said that demand for the company?s coal at home remains limited due its higher quality, thus domestic sales is expected to account for about 13 percent of total sales this year.

Of the 28.5 million tons coal sales volume target this year, about 66 percent has been contracted, and 34 percent has yet to find buyers. Of the contracted volume, the company has managed to reach price agreement with buyers for 43 percent of the volume.

Editing by Reiner Simanjuntak