Mandiri to increase coal sales this year, expects price recovery
Thursday, March 3 2016 - 01:09 AM WIB
PT Mandiri Intiperkasa, a coal mining subsidiary of Mandiri Group, seeks to increase coal sales volume this year to around 5 million tons from 4.5 million tons last year.
Corporate Director of Mandiri Group Herman Kasih told Petromindo.com Wednesday that sales volume could be even further increased to 6 million tons if a price recovery takes place in the second half of this year as expected by the company.
Mandiri, which operates a 9,240-ha coal concession in Tarakan, North Kalimantan, last year produced 4.5 million tons of coal with calorific value of 4,800-4,900 kcal/kg GAR, all of which had been sold. ?It?s all been sold. Currently, whatever we produced are sold,? Herman said.
About 70 percent of the company?s output was exported to China, with the remainders to India and other Southeast Asia markets.
Herman said that while some people predicted that coal price will remain weak over the next two years, the company believes that price will start to recover in the second half of this year on increasing demand particularly for power plants in China, India, Thailand, the Philippines, Myanmar and Malaysia.
Editing by Reiner Simanjuntak