Bara Jaya resumes coal production

Courtesy of Bara Jaya

IDX-listed coal mining company PT Bara Jaya Internasional Tbk has resumed coal production at its East Kalimantan mine run by subsidiary PT Mega Alam Sejahtera, with production target this year at 1 million tons, Kontan reported on Friday.

The paper quoted a company official as saying that it resumes production activity following recent recovery in the price of coal, and hopes that export can start in February.

Bara Jaya, which produces coal with calorific value of 3,500 kcal/kg GAR, suitable for markets such as India, suspended production activity in the first quarter of last year due to the drop in coal price. Price of coal with CV 3,500 GAR dropped to around US$17 per ton but in December of last year returned to around $33.71 per ton level.

Bara Jaya has installed production capacity of about 250,000 tons per month, or equal to about 3 million tons per year, but in the initial phase of returning to production, the company will set monthly production level at around 50,000 tons, the paper said.

Bara Jaya Director Yanto said in a filing with the Indonesia Stock Exchange that the company expects low rank coal price to average $30 per ton this year. (*)