Kapuas Prima seeks to double revenue amid rising commodity prices

IDX-listed lead and zinc mining company PT Kapuas Prima Coal Tbk is confident of meeting this year?s revenue target of Rp 380 billion, and plans to double it next year amid rising price of the two commodities, Kontan reported on Saturday.

?The rise in the price of zinc is triggered by declining stock and supply deficit over the past two years,? said Kapuas Prima Commissioner Kioe Nata on Friday.

He said that zinc and lead prices have doubled over the past year to, respectively, reach US$3,100 per ton and $2,800 per ton.

He said that revenue in the first nine months of this year has reached 70 percent of the full-year target of Rp 380 billion, and the company, which recently went public and listed its shares on the Indonesia Stock Exchange, is on track to meet the target.

Aside from seeking to double revenue next year, Kapuas Prima is also trying to accelerate completion of a lead smelter in Central Kalimantan in the hope it could start commissioning in January 2018. The Rp 120 billion smelter will have capacity of 40,000 tons per year of lead concentrates and can produce 20,000 tons per year of lead bullion.

Finance Director Hendra William said that the target market of the smelter?s product is domestic market. Kapuas Prima currently export lead and zinc ores to China.

Kapuas Prima is also planning to develop a zinc smelter. The company hopes to have a zinc smelter in 2020 with production capacity of 30,000 tons per zinc bullion per year. (*)