PTBA books a 14% increase in sales in Q1 2016

IDX-listed state owned coal firm PT Bukit Asam Tbk (PTBA) announced on Thursday that it sold 5.23 million tons of coal in the first quarter of the year, up 14 percent from 4.57 million tons in the same period of last year.

Fifty six percent of the coal or 2.91 million tons were sold on the domestic market, while 44 percent of 2.32 million tons were exported

For this year, the firm has targeted sales at 29.17 million tons, up 51 percent from last year?s sales of 19.10 million tons. Meanwhile, production is targeted at 28.32 million tons, up 37 percent from last year?s production of 20.74 million tons.

The volume of coal delivered through railways from the firm?s coal mines in Tanjung Enim, South Sumatra to the Tarahan port in Bandar Lampung, Lampung province and the Kertapati jetty in Palembang, South Sumatra reached 4.28 million tons in the first quarter of the year, up 19 percent from 3.59 million tons in the same quarter of last year.

The firm is optimistic that its yearly targets will be achieved in view of the well-established infrastructures linking the firm?s mines to the ports. Starting April, its coal delivery capacity through railway from Tanjung Enim to Tarahan will increase thanks to the operation of new coal loading facilities, called TLS 4. Furthermore, the Tarahan port has been able to unload four coal carriages simultaneously.

Meanwhile, PT Kereta Api Indonesia (KAI) has completed the development of double track from Tanjung Enim to Prabumulih. This will enable the firm to increase its delivery of coal from PTBA by 50 percent to 23.7 million tons this year, from 15.79 million tons last year. The Tarahan port will thus be able to operate at a full capacity of 25 million tons per year.

As part of efficiency program, PTBA targets to cut its production costs by 10 percent this year, similar to last year. One of the efficiency programs is a Rp 2.4 trillion program to ?electrify? all facilities used to support the operation of Tanjung Enim coal mines, including dump truck, shovel, crusher station and overland conveyor system,.

Starting April, PTBA will receive 40 trucks with a combined capacity of 110 tons, which will be used to carry mining materials, as well as a number of large-capacity shovels. Besides, its mining service subsidiary, PT Satria Bahana Sarana (SBS), is spending Rp 962.2 billion to buy several trucks with tonnage of around 100 tons and several other supporting facilities.

Editing by Johannes Simbolon