Bumi Resources to increase output to 100m tons
Saturday, November 22 2014 - 04:50 AM WIB
IDX-listed coal giant PT Bumi Resources Tbk projected coal production next year to increase by 19 percent to 100 million tons from 84 million tons estimated for this year.
The company said in a presentation materials seen Friday that it also aims to return to profit in 2015 and to provide dividend in 2017.
The company?s higher production plan comes amid the government?s policy to limit production and export starting this year in a bid to help maintain reserves for future domestic use and to help stabilize price of the commodity.
Elsewhere, Bumi said it aims to further reduce debts and interest rate burden significantly next year. The company added it would also complete the transaction with China Investment Corporation in a bid to repay debts to the latter.
Bumi is Indonesia?s largest thermal coal producer, and one of the top three exporters in the world, with principal coal assets including PT Kaltim Prima Coal and PT Arutmin. But it has been badly hurt by the lingering downturn in global coal price and huge debt load. Earlier this month, Standard & Poor?s downgraded the rating of Bumi?s US$700 million bonds due in 2017 after the company missed a coupon payment.
Editing by Reiner Simanjuntak