Permit 12 KP Paser Penajam Utara immediately abstracted

Tribun Kaltim
PENAJAM, – Superintendent Ekonomi Pemerintah Kabupaten (Pemkab) Paser Penajam Utara (PPU), Jono has recommended to Bupati PPU Andi Harahap, in order to immediately abstract 12 permit of mining (KP), because of assessed has impinged agreement is entered neglect its obligation to pay [for] fee fixed.

12 KP that will be abstracted

1. PT PPCI (Pasir Prima Coal Indonesia)
2. PT Dua-Dua Kutai Utama
3. PT Bara Utama Jaya
4. PT Penajam Prima Coal
5. PT Harapan Kota Tepian
6. PT Semoi Prima Lestari
7. PT Tranindo Resources
8. PT Penajam Prima Coal
9. PT Energi Penajam Mandiri
10. KSU Cipta Karya Tani
11. Koperasi Paser Raya
12. PT Catur Sugiarta

11 used up/finished KP

1. KSU Cipta Karya Tani
2. PT Tengin Sejahtera
3. PT Swah Brothers Abadi
4. PT Harjo Mas Makmur
5. PT Bara Energi Prima
6. PT Penajam Prima Coal
7. PT Penajam Prima Coal
8. PT Energi Penajam Mandiri
9. PT Semoi Prima Lestari
10.CV Atriani Lestari
11.PT Penajam Bara Energi

5 KP expressed cancelation

1. PT Lingkar Selatan Jaya
2. PT Dimensi Keajaiban Global
3. PT Harmoni Strong Trading
4. PT PT Fusion Ecxel
5. PT Mak Kado International

1 KP retires
PT Cipta Bara Sejahtera

India MMTC reissues 12.5 mln/T coal import tender

Kalimantan Coal

* MMTC reissues tender to supply India’s top power producer
* Tender includes new conditions to boost competition (Adds tender details)
NEW DELHI, Aug 31 (Reuters) -India’s MMTC (MMTC.BO) has reissued a tender to import 12.5 million tonnes of thermal coal with new conditions aimed at enhancing competition, a tender document posted on the company’s website showed.
The tender, for coal supplies to various plants of the country’s biggest power producer NTPC Ltd (NTPC.BO) in the current fiscal year ending March, will close on Sept. 16.
MMTC had issued a tender in May to import 12.5 million tonnes of coal but it was not awarded after Knowledge Infrastructure Systems complained that some tender terms meant only trader Adani would qualify [ID:nLE494747].
Coal-fired plants account for two-thirds of power generation in India and any delays to coal procurement will exacerbate India’s shortage of fuel for power generation.
According to the latest document, contract volumes would be split among three bidders in 50:30:20 ratio compared to 60:40 earlier.
The second and the third-lowest bidders will be awarded the contract if they match the lowest rates, otherwise the tender would be reissued for the remaining quantities. Bids submitted need to be for at least 6.25 million tonnes.
The new tender rules allow bids by any firm that had supplied 2 million tonnes of coal per year in the last three years to companies from specified industries like steel, power and cement.
Also, a deposit requirement had been fixed at 4 percent of the contract value compared to differential rates earlier, as reported by Reuters last week. (Reporting by Nidhi Verma; Editing by Valerie Lee)

Demand for coal returns to form

Kalimantan Coal

FELIX Resources says traditional coal export markets in Japan, Korea and Taiwan are almost back to full strength, in a sign of improving health among the region’s biggest coal buyers.
After yesterday reporting a 42 per cent rise in full-year profit to $267.6 million, the miner said steel mills in the long-established markets had recently returned to at least 80 per cent capacity.
Managing director Brian Flannery said while this was a promising sign, the coming months would test the strength of the rebound in demand.
”They’re probably not back to 100 per cent, but they’re probably not far from it,” Mr Flannery said of the miner’s traditional customers.
Felix – the subject of a $3.5 billion takeover bid from China’s Yanzhou Coal – will pay a fully franked dividend of 50¢, the same as last year, on October 30. The takeover offer of $16.95 a share, plus a $1 dividend, is awaiting approval from the Foreign Investment Review Board and an independent assessment from Deloitte.
Mr Flannery said he expected the company would send takeover documents to shareholders for their consideration towards the end of the month, but would not comment on progress with the FIRB.
But in a sign the market remains sceptical the approval will be granted, Felix shares have traded below the offer price, yesterday closing 0.5 per cent lower at $17.26.
Until the recent improvement in coal markets, Felix was forced to sell its high-value coking coal, used to make steel, at a discount after steel mills cancelled orders.
With prices falling, China has stepped into the breach as a booming market for Australian coal, soaking up a third of the nation’s hard coking coal exports in July.
Some analysts have questioned how long Chinese demand would remain, but Mr Flannery said recent increases in the country’s steel capacity would require strong coking coal imports.
”If they’re running at 600 million tonnes of steel capacity then it seems to me they’re going to import a reasonable amount of coking coal,” he said.
The Felix board expects to approve the expansion of Yarrabee mine in Queensland if it can sign a further 500,000-tonne coking coal contract, which Mr Flannery expected to achieve in the coming months.

Garda Tujuh Acquires Mine in Kalimantan

Kalimantan Coal

VIVAnews – PT Garda Tujuh Buana Tbk (GTBO) is targeting to acquire one mining concession in Kalimantan in order to boost the coal production up to 1.8 million tons in 2010.According to Garda Tujuh President Commissioner Fakir Chand, the company is targeting to find coal products with higher calorie values above 5800 and 100 million tons deposit with the acquisition of the mining concession in Kalimantan.“Meanwhile, this year’s production is 900 thousand tons of coals maximally,” Chand said after attending the Executive Shareholders Meeting at the Sultan Hotel, Jakarta on Tuesday, August 25.Currently, he added, the company is running one mining site with coal production that reaches 5100 calories in Bunyu. “If possible, the acquisition will be carried out this year,” he said.He also said the coal products would eventually be marketed in domestic market while some of them would be exported to India. “There will be more portions for exports but we also provide Domestic Market Obligation (DMO),” Chand said.To increase the current production, the company is finishing a dryer assembly which will be operating in September. As soon as it starts running, the dryer will escalate the production from 50 to 150 thousands per month. “It’s [the assembly] been 70 percent done,” Chand said.Furthermore, he also said the company is analyzing the intention of producing urea fertilizers at the gasification factory. “The analysis is expected to be completed in six months. Now, it’s being handled by the experts,” he said. According to the plan, the gasification will massively produce urea fertilizers by the end of third quarter of 2010 or 2011. “The products will be exported but we still don’t know which countries they will be exported to,” Chand said.Meanwhile, the Extraordinary General Meeting of Shareholders discussed about several agendas which included the central office’s move from Jakarta to Bunyu. The move aims to ease financial and operational works.Another agenda was the changes in the Board of Directors and Commissioners. Earlier, two out of four directors resigned. Thus, the meeting has agreed to appoint three commissioners and five new directors.The Commissioner Board consists of Executive Commissioner Fakir Chand and commissioner members Baukinth Nath Tiwari and Mastan Singh.Meanwhile, the Board of Directors includes Executive Director Surinder Kumar who has replaced Harry Purnomo. Other Directors are Ratendra Kumar Srivasta, Narinder Kumar, Simer Deep and Sharan Phal. The meeting has also approved the change of goals in the business expansion plan.
–Translated by: Nataya Ermanti

Australia Newcastle Thermal Coal Prices Fall 3% to $72 a Ton

Kalimantan Coal

By Rakteem Katakey
Aug. 21 (Bloomberg) — Power station coal prices at Australia’s Newcastle port, a benchmark for Asia, fell 3 percent, declining for the fourth straight week.
The index for power-station coal prices at the New South Wales port dropped $2.25 to $72 a metric ton in the week to today, according to the globalCOAL NEWC Index.
Xstrata Plc, the world’s largest supplier of power-station coal, BHP Billiton Ltd. and Rio Tinto Group are among mining companies that ship coal through Newcastle.
To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net.

GlobalCoal
Weekly Index

RB Index
24-Jul-09 60.67
31-Jul-09 62.40
07-Aug-09 64.73
14-Aug-09 63.75
21-Aug-09 63.45

NEWC Index
24-Jul-09 78.04
31-Jul-09 76.58
07-Aug-09 75.96
14-Aug-09 74.25
21-Aug-09 72.00

Des ARA Index
24-Jul-09 67.23
31-Jul-09 67.70
07-Aug-09 70.49
14-Aug-09 71.66
21-Aug-09 70.72

Coal-Price Forecast Raised at Merrill on China, India Demand

Kalimantan Coal

By Ben Sharples
Aug. 7 (Bloomberg) — Bank of America Corp.’s Merrill Lynch & Co. unit increased its price forecast for Asian power-station coal because of higher demand from India and China, the second-largest energy-consuming nation.
Merrill raised its projection for the benchmark coal burned by Japanese utilities in the year ending March 31, 2011, to $85 a metric ton from $80, analysts wrote in a note to clients dated yesterday. Goldman Sachs JBWere Pty. last month increased its forecast to $80 from $75 for the same period.
“Surprise strong buying by utilities in India and China” is driving thermal coal demand, Merrill analysts led by Sydney- based Stuart Howe said in the note. Prices at Australia’s Newcastle port, an Asian benchmark, have climbed 27 percent since the end of March and were at $76.58 a ton in the week ended July 31, according to the globalCOAL NEWC Index.
Power-station coal prices at Newcastle are rising on expectations that China will import more of the fuel, emerging demand growth in India, and improved economic conditions as credit markets recover, Merrill said.
Australian and Indonesian coal output have the biggest influence over the trade supply outlook, Merrill said. Rising production costs, declining exploration and development success, and rain in Indonesia suggest “supply growth is now limited,” Merrill said.
To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net Last Updated: August 6, 2009 23:01 EDT

GlobalCoal

Weekly Index

RB Index

10-Jul-09 60.69

17-Jul-09 64.08

24-Jul-09 60.67

31-Jul-09 62.40

07-Aug-09 64.73

NEWC Index

10-Jul-09 71.63

17-Jul-09 76.23

24-Jul-09 78.04

31-Jul-09 76.58

07-Aug-09 75.96

Des ARA Index

10-Jul-09 66.01

17-Jul-09 69.98

24-Jul-09 67.23

31-Jul-09 67.70

07-Aug-09 70.49

Adaro Looking to Buy Coal Mine From BHP Billiton

Kalimantan Coal
PT Adaro Energy, the nation’s second-biggest coal producer, has said it is considering acquiring BHP Billiton’s coking-coal mine in Kalimantan.

Adaro is studying “several projects,” including BHP’s mine. The possible deal is still at an early stage, the company said in a filing to the Indonesia Stock Exchange on Friday. BHP, the world’s biggest mining company, scrapped plans to develop the Kalimantan mine because it did not fit its long-term strategy, the company said on June 9.

Isnaputra Iskandar, an analyst at PT OSK Nusadana Securities Indonesia, said that by acquiring BHP’s assets while coal prices were down meant that Adaro “may be able to pay a lower price for the purchase.” 

Bloomberg

Newcastle Coal Exports Fall 10% as Ship Queue Drops (Update1)

Kalimantan Coal

By Ben Sharples
Aug. 4 (Bloomberg) — Coal shipments from Australia’s Newcastle port, the world’s biggest export harbor for the fuel, fell 10 percent last week while the number of vessels waiting to load decreased.
The volume exported in the week ended 7 a.m. local time yesterday was 1.75 million metric tons, compared with 1.94 million tons a week earlier, Newcastle Port Corp. said on its Web site. Thirty-seven ships, waiting to load 2.99 million tons of coal, were outside the harbor, down from 40 vessels.
Coal ships queued for an average 16.2 days to load, up from 12.4 days a week earlier, Newcastle Port said. The waiting time compared with 0.4 day for general cargo vessels, it said.
Twenty-two vessels carrying coal sailed in the week ended Aug. 1, Newcastle Port said today in an e-mailed report. Twelve ships were bound for Japan, four for South Korea, three for China, two for Taiwan and one for Mexico.
Power-station coal prices at Newcastle port, a benchmark for Asia, fell 1.9 percent to $76.58 a ton in the week ended July 31, according to the globalCOAL NEWC Index.
Rio Tinto Group, Xstrata Plc and BHP Billiton Ltd. are among mining companies that ship coal through Newcastle.
To contact the reporter on this story: Ben Sharples in Melbourne bsharples@bloomberg.net Last Updated: August 3, 2009 20:03 EDT

Coal miner Massey Energy sees chance to boost exports

NEW YORK, July 29 (Reuters) – U.S. coal miner Massey Energy Co (MEE.N) sees opportunities to export more coal to Europe and Asia as global steel production and power generation are starting to pick up, its chief executive said on Wednesday.
“We are obviously encouraged by the positive news we are hearing out of the Asian markets,” Don Blankenship told Wall Street analysts. “China reported economic growth of 7.9 percent in the second quarter.
“We have seen some estimates recently that China may be a net inporter of as much as 50 million tons of met (steel-making metallurgical) coal for the year. This news has helped solidify and improve met coal prices,” he said on a conference call to discuss Massey’s second-quarter earnings.
Blankenship noted Indian steel production was up 9 percent in May from a year earlier and total production for the first five months this year exceeded the same period last year.
“As a result, we are seeing increased demand for our met coal products in this important market,” he said.
Asked how much of the roughly 40 million tons a year Massey produces would be exported, Blankenship said: “I would say we’re going to get close to 50 percent moving to Asia as opposed to sometimes there wasn’t anything going to Asia.”
But the company would not ship coal directly to China. “Main destinations that would be projected…would range from Korea to India to anywhere in the (Pacific) Rim. But we don’t want to say too much about exactly where, but India obviously would be the bigger one.”
Blankenship said reports from India suggest stockpiles of thermal, or steam coal, at power plants are as low as two days in some areas.
“They’re increasing and overall economic growth will inevitably lead to increasing thermal coal imports.
“As China and India consume more coal, we believe our opportunity may be greater to sell our coal directly into these markets or to displace Australian and South African coal in the market,” he said.
Massey was well positioned with product, proximity to ports and the ability to ramp up production quickly to take full advantage, said Blankenship.
Massey shares rose more than 7 percent on Wednesday to $24.35 in afternoon trading on the New York Stock Exchange after it posted better-than-expected profits on Tuesday.
The miner said it expects 2009 produced coal shipments to be between 38.5 and 40.5 million tons, with average prices between $61.50 and $63.50 per ton.
For 2010, Massey expects produced coal shipments to be in the range of 37.0 to 42.0 million tons, with an average sales price in the range of $60.00 to $65.00 per ton. (Reporting by Steve James, editing by Leslie Gevirtz)

Indonesia Coal-Prices, Indian demand slows

Kalimantan Coal

Indonesia Coal-Prices climb to $80, Indian demand slows

JAKARTA, July 23 (Reuters) – Prices of power-station coal in Australia, a benchmark for Asia, jumped to nearly $80 a tonne this week, while Indonesian producers turned to local buyers amid slow overseas demand, particularly from Indian buyers, traders said. Thermal coal prices on the globalCOAL Newcastle weekly index rose $3.41 to $78.87 a tonne, from $75.46 a tonne in previous week, on firm spot demand from South Korea and expectations of lower supply from Australia.
Despite the rising Newcastle index, spot prices for Indonesian bituminous coal were softer as Indian buyers preferred to buy South African coal to take advantage of falling freight rates and cheaper prices.
Indonesian bituminous coal of 6,300 kcal/kg air-dried basis was offered at around $57 a tonne, FOB mother vessel, compared with $60 a tonne early this month.
“For bituminous coal, only South African coal is moving to India, mostly for steel and cement factories,” an Indian trader said.
Chinese and South Korean buyers were in the market for Indonesian high-quality coal, providing support, but China was not as aggressive as previous months due to growing local supply grew, another regional trader said.
Plans by Australia Newcastle port, the world’s top coal export terminal, to slash export quotas for all producers by 1 million tonnes for the rest of third quarter, have not prompted more enquiries for Indonesian coal, traders said.
A 25,000-tonne parcel of Australian coal was traded at $77 a tonne on Monday for delivery in October while another 25,000 tonne for delivery in August was traded at $80.50 a tonne on Tuesday.
* INDONESIA SUB-BITUMINOUS COAL
Fresh domestic demand from textile and cement factories in Java offered support for Indonesian sub-bituminous as Indian demand slowed.

Indonesian sub-bituminous coal of 5,500 kcal/kg ADB was around $34-$35 a tonne, FOB mother vessel from Kalimantan.
“We haven’t received fresh inquiries from Indian buyers but many local buyers asked for an increase in volumes from their existing contracts,” an Indonesian trader said.
Aside from local buyers, there were some Chinese buyers that sought to extend spot purchase contracts, the trader said.
Despite lower coal stock levels at power plants, India had slowed buying of Indonesian low-quality coal as traders waited for government tenders and the monsoon disrupted shipments.
“Power plants are in a wait-and-see mode. There are a lot of contracts that need to be renewed,” the Indian trader said, adding that traders were waiting for India’s government to finalise tenders.
India has said coal stocks with power plans in India halved from normal levels to 11 million tonnes at July 6, with many thermal plants facing uncomfortable supply positions. [ID:nDEL256273]
India’s state-run MMTC (MMTC.BO: Quote, Profile, Research) which buys coal on behalf of state utilities has said it may re-issue a tender for 12.5 million tonnes of thermal coal after a complaint from a trader. [ID:nLE494747]
“Wet weather is also very bad. There are a lot of vessels queueing at discharge ports. So everybody is just waiting,” the Indian trader said. (Reporting by Fitri Wulandari, editing by Ben Tan)