CLSA INDO: East Kalimantan bridge collapse affecting coal barging

East Kalimantan bridge collapsed, blocking coal barging. The 10 year-old Kutai Kartanegara Bridge in East Kalimantan collapsed over the weekend, killing around 4 people, leaving 40 more missing and affecting coal transportation for coal coming from West of the crossing point. Starting Sunday Nov. 27, the government has ordered a halt to all coal transportation using tugboats.

Comment from our coal analyst Jayden:
At this stage it is unclear how long the section of river will be unusable whilst the search and rescue is continuing. There are likely to be no immediate impacts to mine production with stockpiles able to accommodate typically ~3 weeks’ production. Coal miners are assessing the impacts on their barge plans. Affected coal companies with concessions further inland of the crossing point include:

- Harum Energy (HRUM IJ) – all operations
- ITM (ITMG IJ) – Trubaindo/Bharinto (which represent ~28% production capacity –
Incominco is unaffected)
- Indika Energy (INDY IJ) – Santan Batubara (~6% of production capacity –Kideco is
unaffected)
- Bukit Asam (PTBA IJ) – IPC (which represents ~8% of production capacity)
- Resource Alam (KKGI IJ) – all operations
- Sakari Resources (SAR SP) – Jembayan operation (~83% of production capacity)
- Bayan Resources (BYAN IJ)

source: CLSA (Indo Sales Update) - dated 28 November 2011