Harum to increase output by 35% next year
Saturday, November 19 2016 - 03:31 PM WIB
IDX-listed coal mining firm PT Harum Energy Tbk plans to increase coal production next year to capitalize on the current rising trend in the price of the commodity.
The company said in a statement on Thursday that coal production next year is targeted to increase by 35 percent to 4-5 million tons from this year?s output estimate of 3 million tons.
Harum said that in the first nine months of this year, sales volume reached 2.5 million tons. ?The company is convinced that sales target this year will be achieved,? it said in the statement.
Harum said that amid the current rising trend in the price of coal, the company tends to sell its much of its output in the spot market to optimize selling price. ?In addition, the company is also trying to increase production volume by increasing existing equipment and infrastructure utilization, without significant asset addition,? it said.
Malaysia is the largest market for the firm?s coal, followed by South Korea and Taiwan. Sales to China had been on the decline over the past two years due to the decrease in imports by Chinese buyers.
Harum is a holding company, with business portfolio engaged in coal mining and logistics activities in East Kalimantan.
Editing by Reiner Simanjuntak