Renuka seeks spot coal buyers

Publicly listed coal miner PT Renuka Coalindo plans to produce between 1.1 million and 1.2 million tonnes of coal this year, a three-fold increase compared to 400,000 tonnes last years, the company?s president director told Petromindo.Com on Friday.

Ganesh Mane said that about 800,000 tonnes of the projected coal production will come from its coal mine in Sarolangun regency in Jambi which is operated by PT Renuka Jambi and the remaining will be sourced from its newly-form trading unit.

Last year, the coal production from its mine reached 400,000 tonnes, he said.

For trading unit, the company obtained the coal mostly from coal mines in Sumatra and Kalimantan, he said without giving the name of coal miners.

Ganesh said that the company has a term contract with several Indian buyers including Adani, Bhatia and Agarwall. ?We have 60 percent of our total production under a term contract and the remaining 40 percent is sold in the spot markets,? he said.

The company has two types of coal products comprising of 5,300-5,100 kcal/kg (ADB) and 5,500-5,300 kcal/kg (ADB), with high moisture 36-45%, he added. (denny)