Kideco to sign historical coal supply deal to Australia

East Kalimantan coal miner PT Kideco Jaya Agung will sign historical coal supply deal to Australian buyer by the end of this year, the company?s official told Petromindo.Com.

After Kideco has completed trial shipment, Kideco will sign a coal supply contract with a volume of 200,000 tonnes to Australia-listed firm Iluka Resources, the official said.

We can only supply a small quantity because the buyer wants coal from Roto block. We can supply bigger quantity if they ask for coal from SM block, he said, adding that Kideco will ship the coal starting next year to Burnbery port in Western Australia.

Kideco's coal is ultra low sulphur content of around 0.1% with calorific value of 5,000-5,250 kcal/kg (ADB). Many end users are burning Kideco coal blended with standard bituminous coal.

Iluka is involved in the exploration, project development, operation and marketing of mineral sands products. Iluka is the world?s largest producer of zircon, with a market share of approximately one third. It is the second largest producer of titanium dioxide minerals, and within this sector the largest global producer of the higher value titanium dioxide products of rutile and synthetic rutile (upgraded ilmenite).

Over recent years, the company has transformed its asset base from its historical reliance on its Western Australian mining operations to new, high quality, longer life operations in the Murray Basin (Victoria and New South Wales) and Eucla Basin (South Australia). (denny)