Resource Alam?s Q1 coal sales, production jump

Indonesia-listed coal mining firm PT. Resource Alam Indonesia Tbk (RAI) announced Wednesday that its net profit in first quarter 2011 booked Rp 81.9 billion (1 US$ = Rp 8,657), a 275% increase compared to the same period of last year.

Better average selling price (ASP) and higher sales volume are the main drivers of such outstanding performance, the company said in a statement.

The company?s production and sales volume during first quarter 2011 reached 846,983 tonnes and 828,497 tonnes, increase significantly from the same period last year of 460,930 tonnes and 394,315 tonnes, respectively.

The increasing coal production is caused by new production from its coal unit PT Insani Baraperkasa?s Bayur and Tani Aman blocks, which started operation in January and February 2011,

The company is targeting to 3.55 million tonnes during 2011. This is a commendable achievement as the 1st quarter is normally the lowest producing quarter of the year with the peak of the monsoon season in January and short operating month in February, it said.

ASP increases by 12.0% to $50.3 per tonnes from $44.1 per tonne in Q1 2010, it said. (denny)