Bumi Resources targets to produce 67 million tons of power station coal in 2011

Bumi Resources targets to produce 67 million tons of power station coal in 2011 and cross 110 million tons in 2013. Expansion projects to achieve the 2013 are already under execution - ie conveyors, captive coal fired power plants, mining equipment and heavy duty trucks, doubling port stock piling capacity and adding a 2nd ship loading for completion next year. Shiploading capacity has already been upgraded to 7500 tons/hour in May'10 (vs earlier 4500 tons/hour).

The strategic principle we are adopting is to build for over capacity across our entire coal supply chain - mining equipment, transportation (that's exponential increase in conveyor length and heavy duty trucks), captive power, adding a 2nd shiploader and a second berth in KPC Tanjung Bara port. Not only would all these make us less weather sensitive but also reduce costs by $1 -$2/ton in 2013 once the above expansion/optimization projects are on line next year.
Bumi expects a strong performance in 2010 (vs previous year) and even stronger in 2011 further catalysed by debt reduction of ca $1 billion this year.