Resource Alam?s unit reports double coal production, sales in 9-mo

East Kalimantan coal miner PT Insani Baraperkasa (IBP), a coal unit of Indonesia-listed firm PT Resources Alam Indonesia Tbk (RAIN) reported on Monday that its coal production in third quarter of 2010 reached 560,000 tons, more than double compared to the last year?s corresponding period of 250,920 tons.

The company said in a presentation material that accumulative coal production and coal sales from January to September period were 1.57 million tons and 1.47 million tons, increasing significantly compared to the same period last year of 765,000 tons and 665,000 tons, respectively.

The company is targeting to produce 2.2 million tons with coal sales 2.1 million tons for full-year 2010, it said.

IBP exports 96 percent of its coal with China as the biggest market absorbing 58.1 percent of the total coal sales, followed by India (29.8%) and South Korea (6.1%).

Next year, the company is expected to produce 3.5 million tons of coal with coal sales 3.4 million tons, higher compared to this year?s revised target of 2.2 million tons and 2.1 million tons of coal sales.

Earlier, the company said that it was on track to meet its production target for this year at 2.85 million tons.

The company said the production increase will materialize as six new pits namely Tani Bakti, Tani Bakti Utara, Handil Bakti, Sambutan, Separi, Perangat will start producing next year, bringing the company's producing pit to eleven. He did not give details.

IBP produced 1.008 million tons of coal in 2009.

IBP is a coal contract of work (CoW) holder with CV ranges from 5,200-6,300Kcal/kg (ADB). (denny)