Banpu says coal operation in RI delivers stronger output

By Demas Simbolon

Thailand's top coal miner Banpu Plc said that its Indonesia coal operation delivered sale volume of 6.62 million tons in the second quarter, a 16 percent higher compared to the previous quarter.

"This was led by strong coal output of 3.5 million tons from the biggest mine Indominco," the company said in quarterly report.

It said Trubaindo has flat sale volume of 1.9 million tons while the re-opened Kitadin Tandung-Mayang contributed 0.6 million tons with its output ramp up expected in second half of this year.

Jorong and Kitadin-Embalut together added 0.6 million tons.

" The softening coal market prices since early this year resulted in a lower average selling price for Indonesia to $94.21 per ton, decreasing 6 percent quarter on quater period," it said.

Banpu operates five producing mines in Indonesia namely Indominco Mandiri, Kitadin and Kitadin Tandung Mayang and Trubaindo, all of which are located in East Kalimantan, and Jorong Barutama Greston in South Kalimantan. Banpu lists its Indonesian mines at the Indonesia Stock Exchange through its subsidiary PT Indo Tambangraya Megah Tbk.

The company reported a 43 percent gross profit margin in the second in the second quarter,

It said that the less favorable coal market outlook recently would continue to be a challenge for the average coal selling price of its Indonesian operation over next few quarters.

Nevertheless, the flexibility to adjust operating cost as provided by its open-pit mining will make Indonesian operation relatively defensive to coal prices fluctuation.

Editing by Adianto P. Simamora