Kideco reports lower coal sales volume

Petromindo

IDX-listed integrated energy company PT Indika Energy Tbk said that its East Kalimantan coal mining subsidiary PT Kideco Jaya Agung saw a lower coal sales volume in the first quarter of this year, but enjoyed higher price.

The company said in a statement Thursday that Kideco?s coal sales volume in the January-March 2017 period declined to 8.5 million tons from 9.5 million tons in the corresponding period of last year, but average selling price was higher at US$49.6 per tons in line with the recovery in the price of the commodity.

?At the same time, cash cost excluding royalty improved from $29.8/ton to $25.8/ton primarily as a result of lower stripping ratio and improve contract mining,? Indika said.

Indika President Director Arsjad Rasjid said late last year, Kideco?s coal production in 2017 was targeted to reach around 32 million tons.

According to Indika website, Kideco Jaya Agung, established in 1982, undertakes surface coal mining at a 50,921 hectare concession in Paser Regency, East Kalimantan Province, where it holds coal mining rights under a first-generation Coal Contract of Work (CCoW) until 2023. Kideco, which currently operates five open pit mining sites with estimated coal reserves and resources of 651 million tons and 1,376 million tons respectively, produces a range of sub-bituminous coal containing low levels of sulfur, ash and nitrogen, making it environmentally friendly for use in coal-fired power plants.

Editing by Reiner Simanjuntak