Kideco to boost production to 30MT

East Kalimantan coal miner PT Kideco Jaya Agung expects to boost production to 30 million tones in 2010, up from 22.2 million tones targeted this year, a company official said on Thursday.

CEO Kim Sung Kook told reporters that the company will produce 24 million tones next year.

Kim said the increase in production would be achieved through efficiency which included haul road improving and working shift addition.

Kideco produced 20 million tones in 2007 with average selling price of US$34.1 per tonne, Kim said.

This year the company?s out put had been fully contracted with average selling price expected between $45-48 per tonne. 70 percent of the output would be sold through long-term contract and the rest through spot market, he said.

Kim expected that 2009 average selling price could soar to $70-80 per tonne due to soaring global thermal coal prices.

Kideco, which sell coal with average CV of 5,900 Kcal/kg, sells most of its coal production to East Asian market.

The company is 46 percent owned by local firm Indika Energy, which plans to float its shares at the Indonesian Stock Exchange. (denny)