Thai miner starts Kalimantan coal production

Thai coal miner and trader firm Energy Earth Plc has started coal production from its coal mine in South Kalimantan last Friday, The Bangkok Post reported on Tuesday.

The Sebamban mine, with reserves of 2 million tonnes, produced its first coal last Friday, and the first lot of 60,000 tonnes will be shipped to China during this quarter, the report said.

The company completed early last month the acquisition of South Kalimantan coal mining firm PT Tri Tunggal Pitriati (TTP) through share swap. TTP owns two mines with combined reserves of 7.4 million tonnes.

The company has been awarded contracts to supply 2 million tonnes of coal to Chinese power producers over the next four years, the report said.

To secure additional supply, through TTP, Earth is continuing its search for more coal assets and is eyeing a potential site in Central Kalimantan province.

The company early last month signed a memorandum of understanding to supply 8.5 million tonnes of coal to India's Chettinad Group to fuel its power plants starting in July 2013.

After selling 1.4 million tonnes in the first nine months, Earth revised up this year's sales target from 1.2 million tonnes to 1.6 million excluding the first shipment to China.

The Chinese shipments will drive sales volume to 3.2 million tonnes next year.

Detail of Chettinad Group coal supply contract:
Product quality : ADB 5500 Kcal/Kg, Rejection 5200 Kcal/Kg
Original Location : Indonesia
Delivery Period : 1 July 2013 ? 31 December 2015
Delivery Volume : 2013 = 500,000 metric tons
2014 = 4,000,000 metric tons
2015 = 4,000,000 metric tons
Terms of payment : Letter of Credit at Sight. (*)