PTBA expects higher profit despite lower coal production

Chief commissioner of the state owned coal mining operator PT Tambang Batu Bara Bukit Asam (PTBA), Jarman, has said that he is still optimistic that the South Sumatra-based mining company would book a higher profit this year despite a drop in its production, Koran Tempo reported on Monday.

Jarman said that the additional revenue to be raised from coal supply to a newly built mine-mouth power plant in Banjarsari, South Sumatra could offset the decline in the production.

He said that PTBA would supply at least 1 million tons of coal for between 25 and 30 years for the mine mouth power plant which is located near the company’s mining site.

PTBA expects a decline in the coal production by 900,000 tons this year due to problem related to the transportation of its coal to its coal terminal in Tarahan, Lampung.

The company initially planned to sell 10.2 million tons of coal this year. About 6.1 million of the total would be supplied to Suralaya power plant in Banten, and much of the remainder for the export market.

However, the company was forced to lower the sales target due to a damage in a bridge passed by the train to transport its coal to the Tarahan coal terminal. (*)