Semen Gresik needs 3 million tons of coal next year

Indonesia-listed state cement maker PT Semen Gresik (Persero) Tbk needs 3 million tons of coal next year for its production plants next year, the same amount as this year.

"We'll be using more low rank coal for our cement plants in 2011 to cut costs," corporate secretary Sunardi Prionomurti told Petromindo.com, without providing details.

?Next year, our consumption will be the same as this year, because our new cement plants, currently under construction in Tuban, East Java and Tonasa in South Kalimantan, will be completed by the end of 2011,? he said.

Currently, the firm receives around 50-60 percent of the 3 million tons from South Kalimantan coal miner PT Adaro Indonesia and East Kalimantan coal miner PT Kideco Jaya Agung under long-term contracts. The rest is bought from spot market, he said.

?We have long-term contracts with Adaro and Kideco, whose prices are annually renegotiated. Deal has been reached for this year's prices,? he said without specifying the prices.

Semen Gresik, which is located in Gresik, East Java has two subsidiaries PT Semen Andalas in West Sumatra and PT Semen Tonasa in South Sulawesi. (denny)