Alfa Energi to boost coal output this year

By Nova Farida

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Courtesy of Alfa Energi

IDX-listed coal mining firm PT Alfa Energi Investama Tbk aims to boost coal output this year by more than 103 percent to 530,000 tons from 260,000 tons last year amid recovery in the price of the commodity.

?Every year there?s always an increase (in production). In 2015, our coal output was 42,000 tons, and then increased to 260,000 tons in 2016,? said Alfa Independent Director Ishak Abdul Rahman to Petromindo.com recently.

He said that sales volume in 2015 was 105,000 tons, then increased to 255,000 tons in the following year.

Rahman also said that sales revenue last year increased to US$7.2 million from $4.2 million. This year, the company is looking at sales volume target of 95 percent of the projected production. ?Our coal production is exported to China, South Korea, and India, while the remainder is allocated for the domestic market. Export accounts for 80 percent (of sales volume),? he said.

Alfa, which recently sold shares via initial public offering and listed on the Indonesia Stock Exchange, has a 2,089-hectare of coal concession in East Kalimantan Province divided into six blocks. Production so far only comes from a single block. Rahman said that the company has coal reserves of 6.58 million tons, while resources stand at 21.22 million tons.

The company produces low to medium rank coal with CV of 3,500, 4,200, and 4.500 kcal per kg. The coal contains 0.6 percent sulfur, and 8 percent ash, with water content of 30-42 percent.

Editing by Reiner Simanjuntak