Coking coal miner PT Asmin Koalindo Tuhup (AKT), wholly owned subsidiary of PT Borneo Lumbung Energi & Metal Tbk (BLEM), has secured coal sales agreement of 1 million tons from Chinese company dubbed Zhonglian Resources Company Limited on October 4 2010.
Under the agreement, AKT will sell 1 million tons coking coal at the negotiation price based on the quarterly market coking coal.
Borneo initiated a production commercial on September 15 2009. Since at that time to June 30 2010, Borneo produced 1.7 million tons coking coal with average strip ratio of 14.4. During the first 6 months of this year, Borneo's output reached 752,107 tons with annual capacity of 2.4 million tons. The company strives to jack up the output capacity to 3.6 million tons by the end of 2010 and 5 million tons in 2011.
In the first half of 2010, Borneo sold 617,603 tons coking coal or Rp1.07 trillion at average selling price of US$191.5 per ton. The company's production cash cost and average strip ratio reached US$57.5 per ton and 12.9 in the first half of this year.
AKT is estimated to have 69.2 million tons coking coal reserves at Kohong mine with total resources of 280.7 million tons. Telakon mine is estimated to have 98.1 million tons resources.
Disclosure: No position at the stock mentioned above.
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