Indonesia’s fifth-largest coal producer, PT Berau Coal, has won contracts from two new Chinese buyers, lifting sales to China to about 3-4 million tonnes next year from 1.5 million tonnes in 2009, an executive said.

Unlisted Berau Coal had previously secured spot contracts with two
other Chinese buyers for a combined 700,000 tonnes to be shipped
between July 2009 and March 2010.

“We have two new customers (in China), the total sales will be 3-4
million tonnes in 2010. But the contracts are only for one year,”
President Director Bob Kamandanu told Reuters in an interview.

“If they are satisfied with the product they will extend it to a
long-term one,” he added, while declining to disclose the price.

Berau Coal, which has a 1,200 square km (460 sq mile) concession area
in East Kalimantan province, produced 13.2 million tonnes of coal in
2008 and aims to produce 14.7 million tonnes this year.

“We want to push production to 17.5 million tonnes. We are now
reviewing the budget. What we are prepared for is for 17 million tonnes
production,” said Kamandanu.

The firm exports its coal to buyers from Thailand, Hong Kong, China, Taiwan, Japan, Korea, and India.

Berau Coal has been acquired by Recapital Advisors, an Indonesian investment firm. Kamandanu declined to comment.

Sources familiar with the deal had said that the deal could be valued at around $1.3 billion.

The sources had said Recapital is backed by Indonesia’s
politically-connected Bakrie group, which also controls coal miner PT
Bumi Resources, but Recapital had said it was not teaming up with the
Bakrie group for the deal.

Source: Reuters

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