Lanna Harita sets to increase 2010 coal production

East Kalimantan coal miner PT Lanna Harita Indonesia (LHI) is on track to increase production to maximum capacity of 2 million tonnes this year from 1.5 MT in 2009.

Managing Director Thamrong Angsakul told Petromindo.Com on a sideline of Coaltrans conference in Bali on Monday that the Company has produced 500,000 tonnes of coal in the first quarter of 2010.

Thamrong said that the Company?s 2010 production has been fully contracted with 1.2 million will be taken by Swiss trader Glencore AG. He said that the Company and Glencore reviewed price every three months. The rest of the coal would be supplied to China, Thailand and a small volume to Palu coal-fired power plant in Central Sulawesi, which are sold on spot contracts of 5,000-6,000 tonnes per shipment.

LHI, which is a unit of Thai firm Lanna Resources pcl, produces coal with CV of 4,300 kcal/kg (AR), with remaining reserves of 30 million tonnes.

Thamrong said its sister company PT Singlurus Pratama, which also mines coal in East Kalimantan, is set to produce 1.5 million tonnes this year.

He added that Lanna Resources is looking to expand its Kalimantan coal mine portfolio through acquisition of new mines. ?We?re now conducting due diligence on several mines in Kalimantan,? he said. (denny)