Bumi Resources 35 percent coal sale contract 2010 settlement

PT Bumi Resources has only completed 35 percent if its coal sale contract this year. “More than 65 percent of our sale volume did not have a contract in 2010,” the company’s spokesperson, Dileep Srivastava told Tempo in Jakarta yesterday.

Nevertheless, the company is still optimistic that it can produce a high-priced contract within a short time. “We are negotiating with potential buyers,” Dileep said. With the high coal prices, the company has a chance to increase its performance compared to last year’s.

According to Dileep, as the biggest coal mining company in Indonesia, the company is certain that it can sell more coal and use the momentum of the price increase. Based on estimates of the spot market Newcastle Coal Index, the price of coal this year can top US$ 100 per ton.
Source: Tempo Interactive

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globalCoal Market Overview 12 January 2010

The market continued to retreat today. China has announced it was raising banks' reserve requirement by 0.5% because of bubble concerns. Alcoa has disappointed the market with lower reported profit and Stock Markets in Europe and in the US dropped.March DES ARA contract traded $13 lower and RB1 is $7 lower than last week. Cal 10 implied frei g ht narrowed by $1.40 to $3.25, and prompt RB traded at a premium to DES ARA contract. In energy related products, Oil is down ~ $1.

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Coal Newsletter for Tuesday 12 Jan 2010

Well the collapse in coal prices from yesterday lunch time continued. We opened around $1.50 down and then plateaued for most of the morning session. But the afternoon session saw a collapse in prompt API#2 prices, and some low phys DES ARA trades helped justify the collapse. Gas, power, equities, and non-US currencies were all weaker also, but reports of supply issues from Indonesia and continued strong Chinese demand due to their cold snap help keep FOB prices, particularly Newcastle, firm.

In physical we saw a morning 75kt Mar'10 RB1 trade at $87.50. The afternoon saw DES ARA trade for the first time since last Thursday, with two 50kt Mar'10 trades going through, the first at an incredibly low $85.00 the next was higher at $85.75.

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International Coal Price Report - Prebon - 1/12/2010

EnergyCoal@TullettPrebon.com www.TullettPrebon.com

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