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Thursday, 03 December 09
INDONESIA SEEKS TO INCREASE COAL SHIPMENTS TO INDIA, CHINA


Bloomberg reproted that, Indonesia, Asia’s biggest coal exporter, seeks to increase shipments to India and China as the economies improve and consumption rises.

“We’ll see demand from India increase as their power plants start operating,” Herlan Siagian, general manager for marketing at PT Bumi Resources, Indonesia’s biggest coal producer, said on the sidelines of a McCloskey Group Ltd. industry conference in Bali.

Chinese coal imports may exceed 100 million metric tons this year and rise to 200 million tons annually over the next several years, JPMorgan said in a report on Nov. 13. Coal imports by India may increase to 81 million tons in the year ending March 2012 from 70 million tons in the year ending March 2010, Indian coal minister Sriprakash Jaiswal said last month.

PT Berau Coal, Indonesia’s fifth-largest coal producer, expects sales to India to rise to 3 million tons next year from 2 million tons this year, while shipments to China may double to 4 million tons, said Eko Natalina, Berau’s general manager for marketing and sales. South Korean consumers may buy 3.5 million tons from the company next year, compared with 3 million tons this year, he said.

PT Kideco Jaya Agung, partly owned by PT Indika Energy, expects shipments to India to gain by as much as 2 million tons to 6 million tons next year, while shipments to China may increase to 2 million tons next year from 1 million tons in 2009. Sales to South Korea next year may be little changed from this year’s 3.5 million tons, he said.

“With the global economy recovering, demand of coal from China and India will increase,” C.H. Richard Lee, Kideco’s managing director, said in Bali.

Bumi Resources said in October that the company plans to increase sales to China and India by 2012 when Indonesia boosts annual production to 100 million tons from 53 million last year. It may supply 20 percent of its output to each of the two countries, Dileep Srivastava, Bumi’s head of investor relations, said then.
Source: Bloomberg



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