Bumi's H1 coal production rose 13%
Monday, July 12 2010 - 02:38 AM WIB
?In the first half, Bumi mined 30.2 million tons of coal compared with 26.8 million tons in the same period last year, or an increase of 13 percent, despite the unseasonably bad weather,? Dileep Srivastava, Bumi?s head of investor relations, told the Jakarta Globe on Saturday.
?We are on track to cross our 2010 guidance for sales of 64 million tons, minimum production of 67 million tons with an average price of a minimum of $67 per ton,? he said, adding that the company?s large portfolio of mines allowed it to cover shortfalls at sites affected by the unusually long rainy season.
In June, Bumi?s subsidiary PT Kaltim Prima Coal broke its record for coal shipments with 3.96 million tons. Its previous best was in August when it exported 3.80 million tons. ?Presently, [production capacity] is at 6,200 tons per hour, but should reach up to 7,500 in the second half,? Dileep said.
PT Arutmin Indonesia, another Bumi unit, had been impacted by downpours but production was still close to the target, Dileep added without elaborating.
?Overall, Bumi is expecting to sell 5.5 million tons in July ? that translates to an annual total of 66 million tons ? above the 2010 guidance of 64 million tons of thermal coal,? he said.
A foreign investor, however, questioned Bumi?s relatively low share price in light of its strong production. ?We wonder why Bumi?s price is lagging behind. It?s a mystery,? said the investor, who asked not to be named.
Dileep blamed the disparity on political factors. ?The local media and investment fraternity need to re-examine their priorities and focus on true position and business fundamentals. There is no room for vested and motivated interests, wild speculation and rumors.?
The tax office has accused Bumi, KPC and Arutmin of owing a total of Rp 2 trillion (US$=Rp 9,090) in back taxes from 2007. Early last month, rogue tax official Gayus Tambunan said Bumi parent Bakrie Group had bribed him to help it commit tax fraud. Police, however, said they have no plans to investigate the case and Bakrie has denied wrongdoing.
Bumi?s share price fluctuated over the first half, reaching as high as Rp 2,550 on April 6 and a low of Rp 1,710 on May 25. The miner?s stock rose 1.6 percent to close at Rp 1,860 on Friday.
The nation?s weather service has predicted that the dry season would be delayed until mid-July, leading to lower production forecasts and higher prices.
The nation?s tin exports in March fell 41 percent as weather hampered mining. The government also lowered its sugar forecast and expects to produce 2.77 million tons, as prolonged rain reduces the sugar content in cane and delays milling. (*)