Indonesia's Bayan sees 2009 coal output up 56 pct

Indonesia's Bayan sees 2009 coal output up 56 pct
JAKARTA, March 6 (Reuters) - Indonesian coal miner, PT Bayan Resources Tbk (BYAN.JK), expects its coal production to increase by 56 percent this year on an expansion in its coal mines, the company said in its statement.

Bayan, Indonesia's eighth-largest coal producer, plans to produce 9.5 million tonnes of coal this year, up from an estimated 6.1 million tonnes in 2008, it said. The increased production would come from its Firman Ketaun Perkasa mine in East Kalimantan and continued expansion in other mines including PT Wahana Baratama and PT Perkasa Inakerta, it said.

The firm expects to sell 10 million tonnes of coal this year, up from 6.7 million tonnes in 2008. It said that demand remained strong and that all coal sales volumes were fully committed. "Demand remains strong especially from Europe, Japan, Taiwan and Korea. Power projects in the Asian region continue to expand and an increasing number will come on line in 2009-2011," it said.

Despite higher production, the firm forecast average selling prices between $60-$65 a tonne in 2009, down from $74.7 a tonne in 2008 in line with weakened global coal prices. Prices of power-station coal from Australia, a benchmark for Asia, have fallen below $63, the lowest in nearly 21 months, from a record peak of $201 a tonne in July last year.

With higher coal production, the company expects revenue to reach 6-6.5 trillion rupiah ($500.2 million) this year, up from 4.5-5 trillion rupiah in 2008. ($1=11995 Rupiah) Soure: Reuters (6 Mar 2009)