Realm considers export market for Katingan Ria coal project

ASX-listed Realm Resources Ltd is looking into the possibility of turning into the export market for its 51-percent owned Katingan Ria thermal coal project in Central Kalimantan instead of focusing on the domestic market.

The company said in a statement Thursday that while the Katingan Ria coal is ideally suited for proposed coal-fired power plants in Kalimantan including the Kalselteng I (2x100 MW) and Kalselteng 3 2x100 MW, the projects unfortunately have been delayed.

This coupled with development of coal price in the international market has prompted the company to re-assess the Katingan Ria coal project. The company said the thermal coal price for expected Katingan Ria coal (i.e. 4,200 kcal/kg GAR) has in recent months increased to US$52 per tons, before declining again to $37.20/t at the end of the fourth quarter of last year.

?At the time of writing the price has risen to $42.00/t. This together with the downward revision of the forecast production costs for the project has encouraged management to reassess the viability of an export driven operation in addition to its power station strategy,? Realm said in the statement.

Editing by Reiner Simanjuntak