Indonesian miner Bumi Resources is estimated to have produced about 80 million mt of thermal coal in 2015, compared with 84.4 million mt in 2014, according a company source Tuesday.
"For 2016, we do not have a [production] guidance yet but would expect this to be around previous year estimate, although our [production] capability is 90 million mt," the source said. "Market factors and coal price would determine our final volume," he added.
Indonesian miners have been battling weak prices amid muted demand from China and an oversupplied market.
Another major Indonesian thermal coal miner -- Adaro Energy -- late last Friday said its 2015 thermal coal production had dropped 8% on year to 51.46 million mt, slightly missing its own forecast.
Adaro forecast its total production in 2016 to reach 52 million-54 million mt, similar to its production target for 2015.
"We think Newcastle 6,300 kcal/kg GAR coal price would be far below $50/mt FOB in 2016. Hence, a further dip compared with previous year is a depressed case scenario," the source at Bumi said.
The 90-day price of FOB Newcastle 6,300 kcal/kg GAR coal has shed 20% since the start of 2015, ending Monday's session at $50.45/mt, according to Platts data.
Bumi Resources has equity stakes in major Indonesian coal producers Kaltim Prima and Arutmin. Kaltim Prima and Arutmin produce steam coal with a heating value in the range of 5,000-7,100 kcal/kg gross air dried, according to Bumi Resources' website.
