Mining News- Rains have been impacting production at various producing regions in Indonesia over the past few quarters. However, miners were hopeful that they will be able to achieve their output targets for the full year 2018.
Indonesian miner Adaro Energy said that its first quarter production fell 8% year on year as rains impacted output, even as average selling price during the period jumped 14% driven by strong demand in China.
Adaro produced 10.95 million tonne in the first quarter and said it was on track to achieve its full-year target of 54 million tonne to 56 million tonne.
Sales volume for the first quarter fell 9% on the year to 10.93 million tonne, the company said.
Although the company did not give details about the first-quarter average selling price, it said that Chinese demand was one of the primary factors driving prices higher.
Adaro said in its quarterly reported dated April 26 that “China’s coal-fired power generation increased due to the harsh winter and gas shortage and created a tighter coal market in the country.”
Adaro said that “It is expected that after demand for heating declines and supply increases, coal prices will moderate.”
Indonesia accounted for 22% of Adaro’s total sales, while Japan accounted for 15% and South Korea and China 12% each.
Adaro has several mines in South Kalimantan province and produces low ash, low sulfur coals with heating values ranging from 4,000 kcal/kg GAR to 5,000 kcal/kg GAR, according to its website.
Meanwhile, Indonesian coal miner PT Bukit Asam said first-quarter production jumped 18% on the year to 5.28 million tonne, while sales volume rose 16% to 6.3 million tonne.
In an undated presentation posted on its website, the company said it expected to produce 25.54 million tonne in 2018, compared to 24.23 million tonne in 2017.
Bukit Asam, which produces coal with heating value ranging from 4,500 to 7,400 kcal/kg GAR, said its 5,000 kcal/kg GAR coal accounted for about 71% of the total sales volume. The company said domestic Indonesian market accounted for about 45.6% of its total sales, while China accounted for 28.6% and India 10%.