ITMG wants power plant business to contribute up to 30% of revenue
Tuesday, March 7 2017 - 02:56 AM WIB
Petromindo|Lucky
IDX-listed coal mining firm PT Indo Tambangraya Megah Tbk (ITMG) is diversifying into power plant business, which is targeted to contribute 15-30 percent of total revenue within the next three years, Kontan reported on Tuesday.
The paper quoted ITMG Finance Director Yulius Gozali as saying that the company is eying the 2x1,000 MW PLTU Jawa-5 coal-fired power plant project planned by state-owned firm PT PLN to help realize its ambition.
He added that the company is also looking at other opportunities in the renewables sector. ?There are opportunities in the renewables sector including solar, hydro and win that we could possible develop,? Yulius said, without providing further details about the new power plant business.
ITMG last year set up a new subsidiary called PT ITM Banpu Power, which will be engaged in the power plant sector.
Elsewhere, Yulius said that ITMG plans to acquire new coal assets to help expand its coal reserves from the current 211 million tons to around 250 million tons. The planned acquisition is also important as its Jorong coal concession in South Kalimantan is set to expire this year.
As has been previously reported, ITMG plans to increase coal sales volume this year slightly to 27 million tons from 26.7 million tons last year.
ITMG said in a presentation material on February 27 said that coal output this year is expected to be relatively flat at 25.5 million tons compared to 25.6 million tons last year.
The bulk of this year?s output will come from subsidiary PT Indominco Mandiri, which is expected to produce 15.3 million tons. Other subsidiaries including PT Trubaindo Coal Mining and PT Bharinto Ekatama will produce a combined 7.9 million tons, PT Kitadin and Tandung Mayang to produce a total of 1 million tons, and PT Jorong Barutama Greston 1.2 million tons. (*)