ICR fails to meet sales target amid coal price downturn

By Cepi Setiadi

Coal mining company PT Indonesia Coal Resources (PT ICR), a wholly owned subsidiary of IDX-listed mining firm PT Antam Tbk, stated that it missed the 2015 coal sales target especially for low CV coal.

Ady Taufik Yudisia, President Director of ICR told Petromindo.com on Tuesday that the company was only able to sell 380,000 tons of low CV coal from the target of 812,000 tons.

Ady revealed that this low achievement was due to the drop in coal price. ?The buyers were there, but the price was not good enough, hence we just keep them as stock and we plan to release it in this first quarter of 2016,? he said, adding that the low CV coal are from its concession in Sarolangun, Jambi province.

In addition, according to Ady, for the medium CV coal, the company was able to sell about 104,000 tons from the target of 123,000 tons. While for the high CV coal, it sold 150,000 tons from the target of 157,000 tons.

Ady added for the medium and high CV coal it almost hit the target, but in the middle of December about three barges from South Kalimantan destined for Batam and Pomalaa were not allowed to depart due to the bad weather condition and were only released to depart by the end of December 2015. ?So these three barges will be booked in the January 2016 achievement,? he said. ?In total, we were able to achieve about 78 percent of the sales target in 2015.?

Meanwhile, in terms of production at the Sarolangun site, Ady said that the company was able to produce about 88 percent of the targeted 580,000 tons production volume. ?For this year?s target we will have a consolidation first this week,? he ended.

Editing by Reiner Simanjuntak