Indonesian thermal coal miner Indo Tambangraya Megah is expecting full-year production 

and  sales  volume to fall short of its previous forecast due to persistent rains, a company 

source said late Wednesday. 

ITM is expected to have produced nearly 5 million mt in the second quarter of this year whil

e sales volume is expected to have been 5.5 million mt, the source said. 

For the full year, production is expected to range from 24 million mt to 24.5 million mt, while 

sales volume forecast is at 25 million mt to 25.5 million mt, the source said. 

In May this year, the company had forecast full-year production at 25.5 million mt and sales 

volume at 27 million mt. 

According to S&P Global Platts calculations, first-half 2017 production is expected to be 10.4 

million mt and sales volume 10.9 million mt, based on the expected second-quarter numbers. 

Coal sales volume in the first half of last year was 13.1 million mt while output was 12.7 million 

mt. 

"Indonesia has been hit by rains since January till now," the source said. 

Unseasonal  rains  in  Indonesia  have  crippled  production and loading schedules at several 

miners in the first half of the year, leading to supply tightness and rising coal prices. 

ITM,  which  counts Japan, China and India among its major customers, is yet to announce is 

second-quarter results. 

ITM operates six mining concessions in East, South and Central Kalimantan, producing coal 

with  heating  value  in the range of 4,400-6,300 kcal/kg gross as received, according to the 

company's website. 

The 90-day price of FOB Kalimantan 5,900 GAR has risen 4% since January to be assessed 

Tuesday at $74.70/mt, S&P Global Platts data showed.