Golden Energy records 50% increase in coal production

PT Golden Energy Mines Tbk, a subsidiary of Sinar Mas Group, produced 1.49 million tons of coal during the first quarter of this year, a 50 percent increase from the figure recorded in the same period last year.

President Director Furganto Widjaya said in Jakarta on Tuesday that the company expected total sales reached 1.76 million tons during the first three months of this year. ?This year, the company has a target to produce 10 million tons,? he added.

Golden Energy, which operates coal mines in Sumatra, Central Kalimantan and South Kalimantan with total reserves of about 911.25 million tons, has secured sales contracts of 4 million tons with a number of buyers.

One million tons will be bought by GMR Coal Resources, an Indian company which owns a 30 percent stake in Golden Energy. The other three million tons will be exported to China, Thailand and India.

?The total volume of already negotiated contracts has reached 8 million tons,? he said. He estimated the average coal price would reach between Rp 591.500 and Rp 682,500 per ton this year.

Golden Energy plans to spend US$150 million in capital expenditures throughout the coming three years to build port, roads and other infrastructure facilities. (*)