Adaro delivers record 2013 coal production
Wednesday, February 5 2014 - 01:06 AM WIB
IDX-listed coal giant PT Adaro Energy Tbk said it achieved a record coal production of 52.27 million tons in 2013 due to the combination of solid market demand, normal weather conditions and its operations running well.
?We delivered on the higher end of our production guidance of 50 to 53 Mt for the year. Despite the start of the wet season, we finished the year strongly with production in 4Q13 of 13.59 Mt, meeting increased demand, particularly from China,? the company said in a statement on Tuesday.
The company said fourth quarter coal production volume was its second highest quarterly performance. Production volume from the Paringin and Wara pits grew by 10 percent quarter-over-quarter (q-o-q) while the Tutupan pit production decreased 5 percent q-o-q, in-line with its planned product mix for contracted tonnage in 2013.
?We produced 1.69 Mt from the Paringin pit, a 635 percent increase y-o-y, to reach 5.74 Mt, more than a five-fold increase from 2012. The production volume from the Tutupan and Wara pits were relatively flat from 2012,? it said.
?We delivered a record quarterly sales volume of 14.36 Mt, a 2 percent increase q-o-q and 3 percent increase y-o-y,? Adaro added.
As part of the company?s strategy to optimize its product portfolio and to meet customers demand, Adaro introduced a new product, E4900, during the quarter, which has had good acceptance in China, Spain, Hong Kong, India and Indonesia. ?We will start phasing out E4700 in 2014.?
The company?s actual strip ratio in the fourth quarter of 2013 was 5.28x, 10 percent lower q-o-q and 9 percent lower y-o-y. The actual strip ratio for 2013 was at 5.64x, lower than the average planned strip ratio of 5.75x set at the beginning of the year.
The company removed 294.86 Mbcm of overburden in 2013, an 11 percent decrease y-o-y, which was close to its target of 305 Mbcm.
?We were able to lower our strip ratio without harming our long-term mine plan due to the investment we made to increase overburden removal during a higher coal price environment. Furthermore, the lower average planned strip ratio remained higher than the life of mine strip ratio,? the company said.
The company said that its focus in 2014 include to continue to improve business processes and reduce costs by improving collaboration with all contractors to have effective, efficient and safe operations. It renegotiated its mining contracting rate to be a more competitive rate and plan to start commercial operations of its infrastructure projects in 2014 to further improve efficiency and reduce costs.
| Actual | Quarter over Quarter | Year over Year | ||||
| Units | 4Q13 | 3Q13 | % Change | 4Q12 | % Change | |
| Production | Mt | 13.59 | 13.73 | -1% | 13.31 | 2% |
| Tutupan | Mt | 9.67 | 10.17 | -5% | 10.48 | -8% |
| Paringin | Mt | 1.69 | 1.53 | 10% | 0.23 | 635% |
| Wara | Mt | 2.23 | 2.03 | 10% | 2.61 | -15% |
| Sales | Mt | 14.36 | 14.11 | 2% | 13.95 | 3% |
| E5000 | Mt | 8.55 | 9.02 | -5% | 10.15 | -16% |
| E4700 & E4900 | Mt | 3.29 | 1.92 | 71% | - | - |
| E4000 & E4500 | Mt | 2.41 | 2.48 | -3% | 3.80 | -37% |
| Coaltrade's third party sales | Mt | 0.11 | 0.69 | -84% | - | - |
| Overburden Removal | Mbcm | 71.83 | 80.96 | -11% | 76.90 | -7% |
| Units | FY13 | FY12 | % Change | |
| Production | Mt | 52.27 | 47.19 | 11% |
| Tutupan | Mt | 38.65 | 38.62 | 0% |
| Paringin | Mt | 5.74 | 0.94 | 511% |
| Wara | Mt | 7.87 | 7.63 | 3% |
| Sales | Mt | 53.47 | 48.62 | 10% |
| E5000 | Mt | 34.09 | 37.70 | -10% |
| E4700 & E4900 | Mt | 8.43 | - | - |
| E4000 & E4500 | Mt | 9.64 | 9.71 | -1% |
| Coaltrade's third party sales | Mt | 1.30 | 1.21 | 8% |
| Overburden Removal | Mbcm | 294.86 | 331.48 | -11% |
Editing by Reiner Simanjuntak