Bara Jaya to ship 45,000 tons of coal to India

By Tri Subhki R

Petromindo

IDX-listed coal mining company PT Bara Jaya Internasional Tbk plans to ship 45,000 tons of coal to a buyer in India this month. The company resumed production activity recently following a few years of suspension due to the drop in coal price.

?The coal loading to the vessel is expected to be made on October 20,? Bara Jaya?s Corporate Secretary Andreas Andy said to petromindo recently.

He added that the company, through its subsidiary company PT Mega Alam Sejahtera (MAS), only produces coal per request of buyer and if the price is reasonable. Bara Jaya sells the coal at the price US$26.25 per ton.

Andreas said that Bara Jaya does not have plan yet to boost coal production despite the current rising trend in the price of coal. ?The coal price recovery of low rank coal, such as our coal product with 3,300 ? 3,500 kcal/kg GAR, is not as good as price recovery of medium and high rank coal products,? he said.

Andreas also stated that the Bara Jaya?s sales margin for low rank coal from MAS is very small.

MAS operates a coal concession that is located at Berau Regency, East Kalimantan Province. Besides MAS, Bara Jaya owns other coal concession namely PT Sarana Mandiri Utama in Tarakan Regency, East Kalimantan, which has yet to enter production stage.

Editing by Reiner Simanjuntak