Golden Eagle expects coal sales to increase by 35%
Monday, January 9 2017 - 01:13 AM WIB
Courtesy of Golden Eagle
IDX-listed coal mining company PT Golden Eagle Energy Tbk expects coal sales volume this year to increase by 35 percent to 1.46 million tons from 1.08 million tons last year on the back of recent recovery in the price of the commodity, Kontan reported on Monday.
The paper said that realized coal sales volume last year was lower than the initial target of 1.2 million tons.
The paper quoted Golden Eagle President Director Roza Permana Putra as saying that the company will allocate capital expenditure of US$25 million -30 million this year to help meet the target. ?Most (of the capex will be used) to increase stake in the Tabalong mine and its development,? Roza said, referring to the coal mine located in Tabalong Regency, South Kalimantan, where the company currently holds a 34.17 percent shares in PT Tabalong Prima Resources, which owns the mine.
Golden Eagle aims to become a majority owner of the Tabalong mine, seeking to increase its stake in Tabalong Prima to 56 percent. Roza hopes the company to be able to soon realize the plan. ?The acquisition of Tabalong will provide additional reserves of around 109 million tons,? he said.
He said that the company?s other coal mines in South Sumatra and Kalimantan will also contribute to this year?s sales target.
In terms of market, the company aims to expand its export market to include Hong Kong, Vietnam, the Philippines, and other Asian countries. The Southeast Asia region has been Golden Eagle?s key market. Last year, Thailand accounted for almost 56 percent of the company?s coal export.
Elsewhere, Roza said that Golden Eagle is eying the power generation business as part of diversification strategy. The company has participated in pre-qualification tender of power plant projects held by state-owned electricity firm PT PLN, he said. (*)