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Saturday, 07 May 11
BERAU INKS DEALS WITH CHINESE FIRMS AS COAL WEATHERS COMMODITIES STORM - THE JAKARTA GLOBE


The Jakarta Globe reported that, Berau Coal, one of the country’s largest coal miners, has signed sales contracts with two Chinese companies as it tries to meet growing demand from China, a company official said on Friday.

Bob Kamandanu, Berau’s commissioner and the chairman of the Indonesian Coal Mining Association (APBI), said Berau signed a five-year deal with Huaneng Power International and a three-year contract with Zhushui Energy Resource Group. It will sell 1.5 million tons of coal annually to each company, as quoted by paper.

“Coal demand from China is growing significantly, and Chinese companies are mainly looking for long-term contracts,” Kamandanu said on Friday.

Huaneng Power is China’s largest electricity producer, while Zhushui focuses on coal imports.

Indonesia’s coal output is expected to climb this quarter after wet weather in the first quarter saw it drop to 89 million tons. Kamandanu said output should increase to 95 million tons in the second quarter before falling back to 85 million tons in the following two quarters.

The dry season is expected to start in most areas in Indonesia around May or June, offering a timely boost to the country’s agricultural and mineral sectors.

“Higher production would go into the export market, but the weather has been very unpredictable over the past few years so it’s hard to say if there will be enough dry months ahead for miners to be able to ramp up production,” a Singapore-based trader said.

Global coal prices only saw a limited sell-off this week despite a rout in other commodities, and the market’s strength is backed up by producers and traders saying rising output from Indonesia, the world’s top thermal coal exporter, is being soaked up by India and China.

Full-year production is expected to hit 354 million tons, higher than the APBI’s earlier forecast of 340 million tons, which Kamandanu said on Friday was conservative, and follows production of 310 million tons last year. The APBI forecast in April the country’s exports would be between 260 million and 270 million tons in 2011, but traders said the final export numbers could be higher if production reaches 354 million tons.

Kamandanu said Berau planned to spend $100 million to produce 20.5 million tons of coal this year, up 19.8 percent from last year. The coal miner sells most of its output to China and South Korea, with China accounting for 25 percent of its coal sales and South Korea making up 16 percent.
Source:
The Jakarta Globe (Ririn Radiawati Kusuma & Reuters )



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Wednesday, 18 May 11
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The Jakarta Globe, an Indonesian English language news paper reported that, A report by Standard & Poor’s Ratings Services that a regulatory ...


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