Borneo, Krakatau Agree Deal Over Coking Coal
Asmin Koalindo Tuhup, the unit of Borneo Lumbung energy and metal, plans to supply coking coal to Krakatau steel, the nation’s steel maker, in 2014.
Both companies signed the deal in Jakarta on Wednesday. Asmin will supply 900.000 tons of coal per years to the steel maker, according to agreement.
“ we need the coking coal to help boost our steel production,” said Fazwar Bujang, president director of Krakatau steel.
Fazwar said the coal would help boost steel production at Banten Krakatau. Fazwar said there would be an additional 1.2 million tons of steel production in 201.
Ken Allan of Borneo Lumbung said that the company would arrange a special price for Krakatau steel, a state-run enterprise.
He said the average price of coking coal was forecast to increase 13 percent to $230 Perton this year from last year’s average price $200 per ton.
“the selling price will be a special one,” he said “we’ll do that in order to support the steel production in the country.”
The company need ti the boost its production to meet global demand, Fazwar said.
Fazwar said the global steel demand stood at 1.4 billion tons per year. China, with the world’s second-biggest economy, supplied about 700 million tons of steel per year to meet the global demand.