Bara Jaya to resume coal production if price further improves

By Tri Subhki R

IDX-listed coal mining company PT Bara Jaya Internasional Tbk is still waiting for coal price to further improve before resuming coal production at its mines in East Kalimantan.

The company suspended operation earlier this year due to the coal price drop. Coal price has started to recover in recent months, with the government coal reference price (HBA) rising to US$70 per ton this month.

?The coal price hike, particularly for low calorific value coal, is not (yet) significant. The current price (recovery) can?t be predicted whether its sustainable or not for next year,? Bara Jaya's Corporate Secretary Andreas Andy Santoso said to Petromindo.com on Friday.

Bara Jaya, formerly known as PT ATPK Resources Tbk, has two coal mining subsidiaries PT Mega Alam Sejahtera (MAS) and PT Sarana Mandiri Utama. MAS produced low rank coal 4,500 - 5,000 kcal/kg (adb) with total moisture 40 percent. MAS. which owns 41.5 million tons of coal resources, was the only producing asset before it was suspended earlier this year.

Editing by Reiner Simanjuntak