PTBA starts Suralaya price negotiation

IDX-listed coal mining firm PT.Tambang Batubara Bukit Asam said on Friday it had started negotiation with PT. Indonesia Power for Suralaya Power plant for 2009 coal supply volume and price.

Investor Relations Head Nurtimah Tobing said PTBA will increase supply to Suralaya from 5.1 million tonnes this year to 6.1 MT due to improving railway transportation capacity. Tobing also said that PTBA would want to increase 2009 price from Rp.618, 000 (US$=Rp.12, 300) per tonne this year.

PTBA has 10-year contract to supply 6.1MTPA of coal to Suralaya until 2012 with annual price review. Due to worsening railway condition, PTBA had cut the supply to 5.1MTPA for the past few years.

Tobing also said that despite global economic gloom the company aim to increase sales by 20 percent to 15.5 MT next year. The company expects its own production to reach 13 MT next year added by 0.5 MT from new mine production and 2 MT from trading. (denny)