ITM expects slight increase in 2014 output
Tuesday, March 18 2014 - 05:01 AM WIB
IDX-listed coal mining firm PT Indo Tambangraya Megah Tbk (ITM) said that production this year is expected to increase slightly to 29.5 million tons from 29.4 million tons last year amid lingering weak market condition.
The company said in a 2013 annual report released on Tuesday that about 77 percent of the production has been contracted with buyers.
It added that sales volume for this year is projected at 29.7 million tons, also a slight increase from last year?s 29.1 million tons.
ITM expected coal price to remain under pressure this year due to oversupply problem, with price to be lower than last year?s average. The company, however, hopes the global coal market to start recovery in the second half.
At the end of 2013, total estimated coal resources of ITM (proven and probable) stood at 1,595 million tons, with total reserves amounting to 361 Mt.
ITM, which is a subsidiary of Thai energy giant Banpu PCL, operates five coal mine units in Indonesia including PT Indominco Mandiri, PT Trubaindo Coal Mining, PT. Bharinto Ekatama, PT. Kitadin and PT Jorong Barutama Greston.
Editing by Reiner Simanjuntak