Golden Energy?s Q2 coal output jumps 31.9%

Petromindo

IDX-listed coal mining company PT Golden Energy Mines Tbk reported coal production in the second quarter (Q2) of this year increased by 31.9 percent to 3.02 million tons from 2.29 million tons in the corresponding period of last year.

The company said in a statement on Monday that sales volume during the April-June period rose by 15.7 percent to 3.17 million tons from 2.74 million tons in the same quarter of last year.

South Kalimantan coal subsidiary PT Borneo Indobara (BIB) production volume contributed 83.3 percent of the overall company?s production during the period, and BIB sales volume contributed 78.4 percent of the overall sales.

?Currently, BIB has received RKAB approval (from the government) to conduct the production up to 12.0 million tons in 2017,? Golden Energy said in a statement, referring to the budget and work plan. The company also operates mines in Jambi through subsidiary PT Karya Inti Mining.

Golden Energy President Director, Bonifasius said in an interview in May with this portal that the company is on track to meet full-year production target of 14.35 million tons.

Bonifasius said in the statement on Monday that 2017 is the year of resurrection for all mining industries, including GEMS. "Coal prices have reached a new and more stable equilibrium point, causing the upscale of coal market," said Bonifasius. On the coal industry, the company will conduct an investment that shall be able to support the increase of production and sales of the company in the future.

"Currently, the company through BIB is reviewing to increase the capacity of hauling road, stockpile, and barge loading conveyor which can accommodate over 20 million tons of coal capacity per year. The company is well poised to ride on the currently buoyant coal prices as it ramps up its coal production" said Bonifasius.

The company said that BIB has the strategic and best of infrastructure in its class, including a special port located at an average of 25 km from the mining pit, which is considered close, compared to other competing mining pits in South Kalimantan, hauling roads which is controlled by BIB itself, as well as conveyor belts extend 800 meters into the Java Sea, which enable direct loading onto large barges that are not subjected to tidal conditions unlike many of its competitor which load at riverfront. The conveyor has a barge loading rate of 3,000 tons per hour.

Editing by Reiner Simanjuntak