Dayaindo expects 20% increase in 2012 revenues

Publicly listed coal mining company PT Dayaindo Resources International Tbk (KARK) expects a 20 percent increase in total revenues next year to Rp 2.04 trillion from about Rp 1.7 trillion this year.

The company?s president director Sudiro Andi Wigono said in Jakarta last week that the company planned to further increase coal production in order to meet the sales target next year. He said that this year's total sales volume is expected to reach 3.2 million tons this year, of which about 1.2 million tons are from its own production and 2 million tons are procured from other producers.

He said that next year, the company would reduce the sales of coal procured from other coal miners by about 60 percent to increase profit margins. ?Next year, the increase in sales will not be so significant but with better margins,? he said, adding that of this year's sales the coal procured from other producers accounted for larger part of the total sales but with profit margin being smaller.

KARK plans to acquire several coal mines in East Kalimantan, South Kalimantan, Jambi and Papua to increase coal reserves to 50 million tons in 2012 and 300 million tons in 2015. The due diligence for the acquisition plan will be carried out next year. (giok)