Agritrade coal unit expands production capacity

By Ruli Setiawan

HK-listed Agritrade Resources Ltd said that production capacity at its Central Kalimantan coal subsidiary PT Senamas Energindo Mineral (SEM) increased to approximately 2.5 million tons in the first nine months of this year as compared to approximately 2.1 million tons for the same period in 2014.

The company reported Wednesday that as a result of the increase in production capacity, the group?s mining segment has managed to record a turnover of HK$518.4 million, 7.4 percent lower than HK$560.1 million in the corresponding period of 2014.

Profit in the nine-month period also declined by 31.6 percent to HK$79.9 million from HK$116.8 million in the same period of last year due to the coal price drop.

Agritrade said in a statement that the group possesses the competitive advantages of having advanced production infrastructure at its SEM site, excellent coal logistics networks and jetty and port service facilities. The group has continuously invested in the enhancement of its mining equipment such as excavators and dump trucks to facilitate its mining operations including overburden removal, coal getting, hauling and loading processes. The group has also owned twelve sets of vessels (including six sets of tug boats and barges each) and has built up its own fleet in Indonesia inland waterway.

Agritrade?s subsidiary SEM operates a 2,000-ha coal concession in Barito Timur Regency, Central Kalimantan. The company produces its own brand of SEM coal, a sub-bituminous, low-sulphur, low-pollutant thermal coal with calorific value (as received basis) of 3,800 kcal/kg in its raw form.

Moreover, Agritrade said it enjoyed the exclusive rights to operate and manage the 60-kilometer ex-Pertamina road between the SEM coal mine and jetty facilities for a period ending 30 September 2022. Attributable to the strengths above, the group has successfully operated its mining business with high production efficiency and better cost and operational control over the coal logistics. Coupled with the well-established local and international sales and distribution channels and high-calibre professional teams, the group can manage to achieve a relatively stable turnover and profit for its mining segment and is also able to maintain a continuous increase in production capacity for its mining operation. The group expects effort will be kept in achieving objectives in cost reduction and operation efficiency enhancement in the future.

Editing by Reiner Simanjuntak