PT Berau Coal Energy Tbk, Indonesia's fifth largest coal miner, reported a 35% increase in total coal reserves to 467 million tons from 346 million tons, said a new Joint Ore Reserves Committee (JORC) report published in June 2011.
Berau's assets are located in the northeastern part of Kalimantan and consist of three operating mines, namely Lati (which is the largest mine accounting for circa 60% of PT Berau's output), Binungan and Sambarata.
Berau recorded a strong operating performance for the first half of 2011. Despite high levels of rainfall PT Berau produced 9 million tonnes of coal, a 41% increase over the prior period, and recorded sales of 9.6 million tons of coal.
Berau's average selling price for the period was US$75/ton. Production costs at PT Berau were US$35/ton. The increase from the prior period is mainly due to an increase in the stripping ratio, greater haulage distances (between the coal mined and the coal processing plant), higher fuel costs, and higher contractor costs.
The average stripping ratio for the period was 9.5. In terms of sales by destination, 36% of sales went to China, 16% to Taiwan, 11% to India and 21% to the rest of Asia, with the remaining 16% sold domestically into Indonesia.
Berau's first half sales were split 77% contracted priced, 20% contracted index-linked and 3% contracted unpriced.
Disclosure: No position at the stock mentioned above.
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