Kideco sees moderate production growth in 2007

East Kalimantan coal miner PT.Kideco Jaya Agung expects to increase production to 20 million tonnes this year, up from 18.9 million tonnes it produces last year to meet increasing demand in India and China, a company official said.

President Director Kim Sung-Kook told Petromindo.Com that the company?s production for this year has been 90 percent contracted. ?The remaining 10 percent of uncontracted production will be used to cater for spot demands from our existing clients,? he said.

Kim said that production increase would be sold to Indian and Chinese markets where demands are increasing due to economic growth.

Kideco has production capacity of 22 MTPA. The company exports 70 percent of its production to overseas markets such as Korea, China, Taiwan, India and Japan. Domestically, it sells some 7 MTPA of coal to domestic market with major power plants such as Paiton Energy Company (1 MTPA, long-term contract), Java Power?s Paiton (1.8 MTPA, long term contract), Cilacap power plant (0.5 MTPA, long term) and Suralaya power plant (1.5 million, 1 year contract, expiry August 2007). He said Kideco is looking to extend supply contract with Indonesia power?s Suralaya.

The company has also signed 15- year contract to supply 360,000 tonnes of low CV coal per annum to Tanjung Kasam 2x55MW power plant starting 2009. (alex)