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Friday, 15 January 10
INDONESIA COAL - HEAVY RAINS HAVE LITTLE IMPACT ON COAL OUTPUT
 Coal shipments from Indonesia's main coal-producing area are unlikely to be hit by heavy rains during January-February as many miners are prepared for the wet weather, officials and traders said on Friday.
South and East Kalimantan provinces on the island of Borneo account for 90 percent of Indonesia's coal output, and output can sometimes be affected by heavy seasonal rains.
The Meteorology and Geophysics Agency said in its monthly rain report that most parts of South Kalimantan and some parts of East Kalimantan will have monthly rainfall of a moderate level of between 201-300 mm in January-February. Some areas of East Kalimantan will have lower rainfall of between 151-200 mm.
"Rainfall in Kalimantan will increase in January-February but the wet weather tends to be normal in patter," said Hendro Santoso, the head of climate information at the agency.
Weather in Indonesia had been benign for most of 2009 due to impact of El Nino. The El Nino weather pattern, driven by an abnormal warming of the eastern Pacific Ocean, can create havoc in weather conditions across the Asia-Pacific region.
The drier weather meant Indonesian coal producers were able to ramp up production in 2009, with output reaching 254 million tonnes -- topping the government's forecast of 230 million tonnes made in early 2009, and an increase of about 6 percent from 2008.
Heavy rains so far this year have had a minimum impact on mining operations and shipments in Kalimantan, although traders said rains had forced a few producers -- mostly small miners -- to slow down coal loading.
"We still experience heavy rains but we try to meet the shipment schedule by ensuring stockpiles with enough coal for all the incoming vessels," said a trader at one of Indonesia's top five coal producer.
"We experience wet weather every year, so preparation should have improved," the trader said, adding his firm also had temporary coal stocks which could be transported using smaller trucks via hauling roads suitable for any type of weather condition.
In 2008, heavy rains in Kalimantan forced some producers to delay shipments, including PT Bayan Resources Tbk, which declared force majeur at its Wahana coal mine.
Traders said no producers so far have declared force majeur on shipments because of the wet weather. Meanwhile, in the physical market, supply of high-quality coal remained tight as producers had contracted most of their production for the first quarter, traders said.
"It's very difficult to find coal with a heating value of above 6,000 kcal/kg air-dried basis (ADB) as most producers have secured supply contracts since November-December last year," the regional trader said.
Indonesian bituminous coal of 6,300 kcal/kg ADB was offered at between $63-$66 a tonne, FOB vessel basis this week, up from $62-$65 a tonne last week, traders said.
Source: Reuters / III
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Thursday, 04 February 10
INDIA`S APPETITE FOR COAL EXPECTED TO RISE SHARPLY
Coal powers more than half of India's electricity plants and demand for the commodity is expected to rise sharply as the third-largest Asian econom ...
Thursday, 04 February 10
COAL PRODUCTION EXPECTED TO REACH 280 MILLION METRIC TONS - INDONESIA UPDATE
Indonesia`s coal production target for 2010 has been set at 275 million to 280 million metric tons, according to the Association of Indonesian Coal ...
Thursday, 04 February 10
MASSEY CEO 'NOT EXCITED' ABOUT PROSPECT OF QUARTERLY COAL PRICING
US coal producer Massey Energy is not in favour of switching to a quarterly pricing schedule for metallurgical coal, from the current annual price b ...
Thursday, 04 February 10
BUKIT ASAM GOES SHOPPING FOR MORE COAL MINES
State-owned coal miner PT Tambang Batubara Bukit Asam has set aside Rp 1.5 trillion ($162 million) to acquire two coal mines in East Kalimantan, pre ...
Thursday, 04 February 10
PTT EYES OVERSEAS COAL
Revenue could reachUS$600 million a year
PTT Plc, Thailand's largest energy company, aims to raise the annual revenue from its overseas coal bus ...
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