Bara Jaya set to sign coal sales deal with Indian buyer
Saturday, September 16 2017 - 01:59 AM WIB
IDX-listed coal mining company PT Bara Jaya Internasional Tbk said Friday it is set to sign this month a contract for the sale of 45,000 tons of coal to an Indian buyer.
The company said in a filing with the Indonesia Stock Exchange that delivery of the coal is scheduled to take place in October.
?The 45,000 tons of coal is currently ready at the stockpile of the company. The price of the coal is US$26.25 per ton,? the company said.
Bara Jaya said that coal production as per June of this year stood at only 45,000 tons, far below than its production target of this year. This portal previously reported that the company through East Kalimantan subsidiary PT Mega Alam Sejahtera was targeted to produce this year up to 1 million tons of coal.
But Bara Jaya said that there were a number of factors hampering the company to boost production this year including heavy rainfall which caused flooding and mudflow, and difficulties faced by the company in getting buyer willing to pay reasonable price of its low rank coal, which is seen only suitable for power plants in India, causing ?low bargaining position? for the company. Bara Jaya also relies on the spot market in selling the coal, contributing to factor hampering production.
Mega Alam, which produces coal with calorific value of 3,500 kcal/kg, resumed production activity earlier this year after having suspended it in 2016 due to the weak coal price environment at the time.
Editing by Reiner Simanjuntak