Harum cuts stripping ratio
Tuesday, May 17 2016 - 02:35 AM WIB
IDX-listed coal mining firm PT Harun Energy Tbk plans to cut down average stripping ratio to 6x this year from last year's 7.6x as part of efficiency measures to help cope with the current coal downturn.
President Director Ray Antonio Gunara said on Monday that average stripping ratio in the first quarter of this year has already dropped to 5.7x grom 8x in the same period of last year, which helped improved profitability. "This will be our focus for this year," he said.
He said that a 1x decline in the stripping ratio produces a cost saving of US$2.5 per ton for the company.
He said that the current decline in the price oil fuel bodes well for the firm's efficiency drive.
He said that with expected cash cost of $32 per ton this year, and average selling price of $48.3 per ton, the firm will still enjoy margin.
Ray said Harum plans lower coal output of 3 million tons this year, compared to last year's 3.6 million tons amid the coal downturn.
Harum has four coal mines in East Kalimantan, but only the Mahakam Sumber Jaya (MSJ) mine is currently producing.
The companyhas decided to delay the production of its Tambang Batubara Harum (TBH) mine until 2017 amid the current coal price drop.
Harum has also put its other producing mine Santan Batubara under temporary suspension since 2014. Another mine is Karya Usaha Pertiwi which has not started production yet.
Editing by Reiner Simanjuntak