Baramulti seeks to boost domestic sales this year
Wednesday, March 16 2016 - 12:58 AM WIB
IDX-listed coal mining firm PT Baramulti Suksessarana Tbk is seeking to boost domestic sales this year amid rising demand and a more attractive price, while reducing export portion to India amid tougher competition, Kontan reported on Wednesday.
Baramulti Finance Director Eric Rahardja was quoted as saying that domestic sales are expected to account for 30-40 percent this year, compared to only 6.74 percent last year.
Meanwhile, export to India will only account for 50-60 percent this year, he added.
?In the domestic market, we?re eyeing power plants and other industries such as cement plants,? Eric said.
He said that the government coal reference price (or HBA) has started to become increasingly more attractive than the price in the export market. ?That?s why there will be many (coal miners) who will relocate (sales) to the domestic market,? Eric said.
Baramulti President Director Henry Angkasa added, however, that the company is also seeking to export to China, which hopefully could account for 10 percent of total sales.
As has been reported by this portal previously, Baramulti allocates a lower capital expenditure (capex) of US$6.6 million for this year, compared to $7.02 million last year, amid the lingering coal industry downturn.
The company, which operates coal mines in South and East Kalimantan, said in a presentation material that $2.85 million of the capex will be used to finance the construction of infrastructure facilities, $1.1 million for machinery and heavy equipment, and $2.65 million for other supporting facilities.
The company plans higher coal production of 8.6 million tons this year, of which 7.1 million tons (up from 6.7 million tons last year) are expected to come from its subsidiary PT Antang Gunung Meratus, which operates coal mine in South Kalimantan, and another 1.5 million tons (up from 1.02 million tons) from the company?s Loa Janan mine in Kutai Kartanegara Regency, East Kalimantan.
Editing by Reiner Simanjuntak