PTBA focuses on low stripping ratio

By Tri Subhki R

Petromindo|Lucky

IDX-listed coal mining company PT Bukit Asam Tbk (PTBA) focused on low stripping ratio (SR) in coal production in the first quarter this year, which contributed significantly to the efficiency initiatives. PTBA, a state-controlled enterprise, is expected to maintain the low SR for the rest of the year.

?If it is possible, we want to achieve a much lower SR, because low SR gives significant impact to our cost-cutting initiatives,? PTBA President Director Arviyan Arifin, said on Thursday.

PTBA could manage the SR at 4.02x in the first quarter of 2017 or lower than 5.40x in the same period of last year. In the first quarter of this year, the company produced 4.49 million tons of coal, or 38 percent higher than 3.26 million tons in the first quarter of 2016.

Arviyan voices his optimism that the company will be able to achieve the indicated full year production target of 24 million tons and 3 million tons of coal trading by its subsidiary company. ?We have secured 90 percent of coal sales this year, and half of the contracts are dedicated for PT PLN,? he said, referring to the state-owned electricity firm.

The lower SR and better coal price environment in the first quarter 2017 boosted PTBA?s net profit up to Rp870.8 billion, or 262 percent increase compared to Rp332.6 billion in the same period of last year.

Editing by Reiner Simanjuntak