Kideco aims for production increase

East Kalimantan coal miner PT Kideco Jaya Agung is set to expand production by 15 percent next year, IDX-listed firm PT Indika Energy, Tbk, which controls 46 percent stake at Kideco said.

VP Investor Relations Retina Rosabai told Petromindo.Com on Thursday that Kideco is aiming production level of 27.6 million tonnes next year, up from 24 million production target this year.

Retina said Kideco is aiming to reach production of 30 million tonnes in 2011.

According to Indika?s May 2009 presentation, Kideco had operated two new pits called Samarangau and Susubang that would add to its production capacity.

The Samarangau is the largest coal resources remaining at Kideco?s concession area with resource of 804 million tonnes and mineable reserves of 140 million tonnes and will be the main development for expansion. Coal produced from Samarangau has CV of 4,275 Kcal/kg.

Susubang mine is smaller mine with 14 million tonnes of mineable reserves and 21 million tonnes total resources. The mine produces coal with CV of 5,277 Kcal/kg.

To support the expansion Kideco also invested in heavy equipments and increase capacity of Tanah Merah coal terminal and crushing plant to 30MTPA.

Retina said that 80 percent of Kideco?s coal has been contracted this year with average price expected to be at US$51 per tonne. She expected that the price of US$51 per tonne could be achieved in 2010.

Kideco?s 6M09 revenue increased by a modest 21% yoy to $ 630 million, on the back of higher volume 11.96 million tons (+10.8 % ) and stronger average selling price, $52.69/ton. (denny)