Indonesian thermal coal miner Indo Tambangraya Megah is estimated to have produced about 26 million mt in 2016, a source with direct knowledge of the matter said Wednesday.
ITM's full-year 2016 output was an 8.8% fall from its full-year 2015 output of 28.5 million mt. The company expects to produce about 26 million mt in 2017 as well, the source said.
Thermal coal prices surged in the latter half of 2016, driven mainly by Chinese demand and supply tightness in various producing regions, but ITM could not increase its production due to heavy unseasonal rainfall.
"The Q3 rainfall levels at most mines reached highest levels in six years, with September's level up steeply," the company had said in November 2016, adding that output for the full year was targeted at 26.2 million mt. ITM counts China, Japan, Indonesia and India among its major buyers. It operates six mining concessions in the East, South and Central Kalimantan provinces, producing coal with heating value in the range of 4,400-6,300 kcal/kg gross as received, according to the company's website.
ITM is yet to release its full-year 2016 results.
