Atlas reports stronger production, but still far from full-year target
Friday, June 16 2017 - 01:25 AM WIB
Courtesy of Atlas
IDX-listed coal mining firm PT Atlas Resources Tbk reported Thursday coal production from its mines in East Kalimantan and South Sumatra in the January-May period of this year increased by 38.39 percent compared to the same period of last year.
The company said in a filing with the Indonesia Stock Exchange that output in the first five months of this year totaled 208,340 tons, compared to 150,543 tons in the corresponding period of last year.
Production in January-May 2017 from its Mutara coal hub in East Kalimantan nearly doubled to 127,210 tons from 64,623 tons in the same period of last year, while output from the Kukar hub in South Sumatra declined to 81,129 tons from 85,920 tons.
While the company did not disclose its full-year coal production target, Atlas said in a filing with the Indonesia Stock Exchange that this year it will focus production at its Mutara hub with production target of 1.2 million tons, a 7.5 times increase from output last year, a target which may seem difficult to be realized given the meager performance in the first five months of this year.
Atlas said that in a bid to boost production, it will increase hauling capacity at the Mutara hub. In the January-May period, it has added 80 trucks, thus increasing the number of coal trucks to 173 units, providing additional hauling capacity 50,000 tons per month. The company said it has allocated US$8.2 million for capital expenditure this year to help finance coal infrastructure projects such as jetty and hauling roads.
Some coal miners have previously reported that heavy rains in the first quarter of this year had hampered coal production activities.
Elsewhere, Atlas reported that coal sales volume in the January-May period of this year declined to 174,224 tons from 178,996 tons in the corresponding period of last year. Sales from Mutara Hub reached 113,256 tons, while from Kukar hub 60,968 tons. The domestic market accounted for 65 percent of the sales volume during the five-month period of this year, while India market 35 percent. In the same period of last year, the domestic market accounted for only 38 percent of the sales volume, with India accounting for 62 percent. Atlas said its subsidiary PT Hanson Energy holds a 60 million-ton coal sales contract with state-owned electricity firm PT PLN for 20 years.
The report did not disclose sales volume target for this year. But company Director Lidwina S. Nugraha told Petromindo.com last month the company was seeking to boost sales volume this year to 2.45 million tons from only 291,000 tons last year.
Atlas said in the report that aside from supplying coal to PLN this year, the company also aims to multiply export volume six times to 500,000 tons to markets in India, China, and Malaysia.
Editing by Reiner Simanjuntak