Bara Jaya to resume coal production once price improves

By Tri Subhki R

IDX-listed coal mining company PT Bara Jaya Internasional Tbk said it will only resume coal production at its mines in East Kalimantan once coal price improves as the company won?t sell the commodity at a loss.

"We are still looking for coal demand at appropriate price and we will not sell our coal at a loss," Bara Jaya's Corporate Secretary Andreas Andy Santoso said to Petromindo.com on Wednesday.

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 was the only producing asset before the company suspended operation earlier this year due to the price drop.

MAS produced low rank coal 4,500 - 5,000 kcal/kg (adb) with total moisture 40 percent. MAS owns 41.5 million tons of coal resources.

Bara Jaya has previously announced plan to acquire a coal concession in Central Kalimantan. "The acquisition plan for coal mines with coal quality above 5,000 kcal/kg is in the process," Andreas said.

Editing by Reiner Simanjuntak