Budi Gema plans major coal output expansion in South Sumatra

By Dominikus

South Sumatra-based coal miner PT Budi Gema Gempita (BGG) is planning to increase its coal production capacity to 9.5 million tonnes per year from 1.2 million tonnes, according to an environmental document submitted by Oey Albert, a commissioner at the company, on Monday (March 16).

Based on Petromindo.com records, BGG reported coal production of 4.27 million tonnes in 2024, compared with 4.32 million tonnes in 2023 and 3.63 million tonnes in 2022.

Mining operations at BGG involve several contractors, including PT Ulima Nitra Tbk and PT Putera Kontrindo Abadi. Coal transportation is handled by PT Kereta Api Logistik, while unloading at Simpang station, as well as hauling, stockpile handling, crushing (if required), and coal loading are carried out in cooperation with PT RMK Energy Tbk.

Read also : Ulima Nitra bags 3 coal mining contracts

The company operates a coal mining concession covering 1,524 hectares in Lahat Regency, South Sumatra, including Muara Lawai, Tanjung Jambu, Prabumenang, and Gedung Agung villages. BGG produces coal of varying calorific values, with studies indicating a calorific range of around 4,800–4,900 kcal/kg, alongside relatively low ash and sulfur content.

While disclosures in the Minerba One database remain limited, BGG is understood to be a privately held coal mining company with no publicly disclosed ownership structure.

Editing by Reiner Simanjuntak