Garda Tujuh signs new coal contracts for export market
Wednesday, October 4 2017 - 01:15 AM WIB
IDX-listed coal miner PT Garda Tujuh Buana Tbk said it has signed three new coal sale contracts for export to China, India, and Thailand.
This was said by the company in a filing with the Indonesia Stock Exchange Monday, but did not disclose the name of the buyers, nor the contract volume.
The company said that amid rising international demand, which has pushed commodity price higher, it has also started to receive new orders from export markets of China, India, Thailand, and Vietnam.
Garda Tujuh owns coal concession on Bunyu Island in Bulungan Regency, East Kalimantan Province. The company resumed mining operation at the concession in March of this year after having suspended it from February of 2015 following the drop in the price of the commodity.
In January of this year, Garda Tujuh awarded a three-year contract to coal mining contractor PT VPR Laxmindo with annual coal production target of 2 million tons per year. The company in October of 2016 signed a one-year contract, with option for extension, to supply 12 million tons of coal to Singapore-based Alata Overseas.
Garda Tujuh said in the Monday statement that in the first half of this year, coal production reached 325,008 tons, while sales volume stood at 329,157 tons.
The company said that Atlata has put down a deposit worth US$1 million with the company. It added that from March to September of this year, the company had made 12 shipments of coal.
The company also said it saw rising demand of coal at home, where it has sold 50,000 tons of coal in the domestic market.
Editing by Reiner Simanjuntak