Coal miner to lease out idle equipment

By Romel S. Gurky

East Kalimantan coal mining firm PT Mega Alam Sejahtera, a subsidiary of IDX-listed PT Bara Jaya Internasional Tbk, will lease out its idle heavy equipment units to other companies within the group.

Bara Jaya said in a recent statement that Mega Alam is expected to obtain revenue of up to Rp 19.3 billion until end of this year from leasing the idle equipment units among others dump truck, excavator, dozer, light vehicle, grader, and compactor.

Mega Alam was initially targeted to produce up to 1 million tons of coal this year, but production as per end June stood at only 45,000 tons among others due to the unseasonal rainfall hampering mining activities, and difficulties in getting buyer willing to pay reasonable price of its low rank coal with CV of 3,500 kcal/kg.

Mega Alam resumed production activity earlier this year after having suspended it in 2016 due to the weak coal price environment at the time.

Editing by Reiner Simanjuntak