Delta Dunia suspends coal exploration amid weak price

IDX-listed coal mining services company PT Delta Dunia Tbk said it has suspended coal exploration activities at its subsidiaries amid the lingering weak coal price.

Delta Dunia Corporate Secretary Errinto Pardede was quoted by Bisnis Indonesia and Kontan as saying Monday that the company has yet to decide when the exploration activities will be resumed as it would depend on coal price development.

Delta Dunia through subsidiary PT Banyu Biru Sakti holds a 7,742-ha concession in East Kalimantan, and through subsidiary PT Pulau Mutiara holds a 3,500-ha concession in Jambi, according to petromindo.com data.

Errinto said that in the meantime, the company will focus on its core business of coal mining services, and will continue to seek for new contracts. ?The new contracts are being processed. We?ll release (announce) the new contracts once both parties have reached agreement,? he said.

The company currently holds nine contracts worth US$1.6 billion which are valid until 2019.

Delta Dunia has set a coal production target of about 33.2 million tons, the same as last year?s due to the lingering weak coal price. (*)