Semen Gresik sees higher coal demand in 2012

Finance director of PT Semen Gresik, Cholil Hasan said on Thursday that the country?s largest cement maker?s coal demand in 2012 is projected to increase to 5 million tons from the estimated 3 million tons for this year.

He said that the higher demand comes as the company will complete the construction of two new cement plants in Tuban, East Java, and Tonasa, South Sulawesi, at the end of 2011. The plants are expected to start production in early 2012.

He said that the extra coal supply will come both from existing contracts and the spot market.

Elsewhere, Cholil said that the price of coal for the company is estimated to increase by 10 percent this year.

The company has signed long-term coal supply contracts with PT Adaro and PT Kideoco Jaya Agung. About 30 percent of Semen Gresik?s coal consumption is categorized as high calorie coal, while the reminaders are in the form of medium and low calorie coal, about half of which being supplied by Kideco and Adaro. (giok)