Coal contractors anticipate greater business volume on rising price

Coal mining services companies in the country are expecting greater business volume this year as coal miners plan higher production amid rising price of the commodity, Kontan reported on Tuesday.

Coal contractor PT Pamapersada Nusantara, a subsidiary of IDX-listed heavy equipment and mining firm PT United Tractors Tbk (UT), is optimistic for higher coal production this year. ?We expect coal production volume this year to increase by 5 percent,? Sara K. Loebies, Corporate Secretary of UT told the paper.

The paper said that last year, Pamapersada?s coal production stood at 124.5 million tons. Sara is optimistic that with improving coal price outlook this year, Pamapersada will obtain new coal mining contracts.

PT Cipta Kridatama, a coal contractor subsidiary PT IDX-listed PT ABM Investama Tbk, has set a 25 percent growth in its business volume this year. ?That is the target for overburden (removal) this year,? said Rahman Effendi, General Manager for Operations at Cipta told the paper, adding that production target will be determined later in this quarter.

IDX-listed mining contractor PT Dharma Henwa Tbk is optimistic revenue this year to double to US$519 million compared to last year?s target of $267 million.

The company plans coal production this year to jump by 92.8 percent to 29.1 million tons year-on-year, while overburden removal to surge by 153.6 percent to 223 million bank cubic meters.

The company claims it has obtained new mining contracts since end of last year. ?Demand (for coal mining services) this year increases from last year although the figures can?t yet be published. For sure, this is because of rising coal price,? said Mukson Rosyidi, Corporate Secretary of Dharma Henwa to Kontan. (*)