Dwi Guna to boost coal production next year

By Thomas Sembiring

Petromindo|Thomas

IDX-listed coal firm PT Dwi Guna Laksana Tbk, which also provides port services in South Kalimantan Province, aims to boost coal production next year to among others meet supply contracts with state-owned electricity firm PT PLN.

Dwi Guna officially listed its shares on the Indonesia Stock Exchange on Wednesday following a recent initial public offering where the company, which sold nearly 36 percent of its shares to the public, raising Rp 465 billion in proceeds. The company has previously said that it will use about 56 percent of the proceeds to finance working capital, and the remainder to repay debts.

Dwi Guna President Director Zulfian Mirza told reporters that the company also aims to expand its coal port services to local coal miners in South Kalimantan Province, where the company also owns coal concession in Tanah Laut Regency.

Zulfian said that coal production this year is estimated at 3-4 million tons, and is targeted to increase up to 6 million tons next year in line with rising price of the commodity and growing demand at home amid massive development of coal fired power plant projects.

Dwi Guna, which produces coal with calorific value of 4,200 kcal/kg, sells most of its coal to PLN. The company signed in 2009 a 20-year coal supply contract with the utility firm, and then signed two other contracts in 2012 and 2013 to supply coal for PLN?s power plants in various regions.

Dwi Guna shares jumped by 69 percent to Rp 254 per share on Wednesday during its stock market debut.

Editing by Reiner Simanjuntak