Major coal producers see higher output

Indonesian coal major producers are targeting higher production ahead.

Kideco Jaya Agung projected output to increase to 40 million tons as the company aims to complete its expansion project in August of this year, company managing director Richard Lee told Petromindo.com on Tuesday.

Lee said that the 40 million production target would depend on market condition, but for sure, a minimum 30 million tons output would be realized.

Out of the targeted 40 million tons production in 2011, 18 million tons would be low rank coal, while the remainders would be of the medium type coal, he added.

He said that this year, the company expects output to reach 29 million tons, 7 million tons of which low rank coal.

This year, Kideco?s domestic market obligation (DMO) is as much as 25 percent, Lee said, all of which would be allocated for independent power products which have set a long term contract with the company.

He said that export to China this year will amount to 2 million tons, Japan 1.5 million tons, and to Taiwan 2 million tons.

Meanwhile, Berau Coal will increase output next year to 20 million tons, from the expected 17 million tons this year, according to Eko B. Natalia, company general manager for marketing and sales.

About 17 million tons of output this year has been fully contracted. ?Verbally, it?s been all secured,? he said, but declined to disclose the average selling price target.

Berau?s coal output are mostly of the Lati block, Eko said, exported mostly to Asian countries including China, India, Taiwan and South Korea.

The company?s DMO this year is about 27-30 percent.

PT Padang Bara Sukses Makmur aims to increase production in 2011 to about 4.5 million tons from the targeted 4 million tons this year, company official Hendra E. Santoso said. Last year, output was 3 million tons.

The company?s coal output is of the e-coal type. This year?s DMO is 30 percent, he said.

PT Indotambang Raya Megah projected output to rise by 2-4 million tons from this year?s target of 23 million tons, said Aphimuk Taifayongvichit, SVP Sales and Logistics of ITM.

Exports this year are destined for Japan (20%), China (20%), South Korea (15%), Taiwan (15%), and the remainder to Malaysia, Thailand and the Philippines. DMO this year is 8-9%.

Out of the production this year, 94 percent has been contracted, he said, but declined to mention the average selling price target.

PT Adaro Indonesia sees a 10 percent production increase in 2011, from this year?s target of 45 million tons, said Edwin Tsang, company chief marketing manager.

Export this year will mainly go to Japan at a volume of 4 million tons, Taiwan 1.5 million tons, China 3-4 million tons, and India 3-4 million tons.

PT Bumi Resources, meanwhile, is also eying a higher production in 2013 at 111 million tons, from the targeted 68.4 million tons this year, company general manager for marketing, Herlan Siagian.

He said that company unit PT KPC will produce 70 million tons in 2013, from the targeted 44 million tons this year, while another unit PT Arutmin will produce 30 million tons, up from the projected 24.4 million tons for this year, while the remainder will come from other smaller mining units including Fajar Bumi.

Herlan declined to disclose the target for 2011.

Tanito Group aims to boost production in this year to 12 million tons, from 9 million tons last year, said company official David Heap.

He declined to disclose the target for 2011. (denny)