GBU to boost coal production next year

By Thomas Sembiring

PT Gunung Bara Utama (GBU), a coal firm with concession located in Kutai Barat Regency, East Kalimantan Province, will boost its coal production next year by six fold from this year?s target of only 500,000 tons to capitalize on the current rising trend in the price of the commodity.

This was said on Thursday by Johan Handojono, CFO of IDX-listed PT Trada Maritime Tbk, which is set to acquire majority shares in companies which own GBU. In addition, Trada will also acquire PT SMR Utama Tbk, which owns mining contractor company PT Ricona Abadi.

Johan said that Ricona will help realize the plan to boost the GBU coal production. GBU?s current mining contractor is Thies Contractor Indonesia.

GBU operates a 5,350 ha concession under an IUP mining business license which is valid for 22 years through 2031. The mine started production in 2016. Reserves currently stand at around 64.85 million tons, while resources 264.04 million tons with calorific value of 5,200 Kcal ? 5,400 Kcal/kg ARB.

Editing by Reiner Simanjuntak