Atlas targets 3m tons coal output next year

IDX-listed coal mining firm PT Atlas Resources Tbk has set a much higher coal production target of three million tons next year, compared to the estimated 800,000 tons for this year, Kontan reported on Saturday.

The paper quoted Ika Riawan, Operational Director of Atlas, as saying that the company has secured sales contract of 3.2 million tons from state-owned electricity firm PT PLN, which has yet to be entirely fulfilled this year due to much lower output. The company initially set coal production target of 2.2 million tons for this year.

Ika said that Atlas, which produces coal with CV of 4,200 kcal/kg GAR at its mines in South Sumatra and East Kalimantan provinces, is also looking for new markets of Vietnam and Malaysia, which have started to use the specific coal quality for their power plants.

To support the higher production target, Atlas has allocated capital expenditure of US$10 million for next year. (*)