PTBA seeks to boost coal output this year

IDX-listed coal giant PT Bukit Asam Tbk plans to increase coal production this year by 22.32 percent to 24 million tons from 19.62 million tons last year, Kontan reported on Monday.

The paper quoted PTBA Corporate Secretary Adib Ubaidillah as saying that despite the current bad weather condition, the company remains optimistic to be able to meet the production target. He said that the company has set up drainage system to avoid heavy rainfall from hampering production activities.

He added that the higher production target is also made possible following the completion of rail capacity expansion in South Sumatra by state-owned railway operator PT Kereta Api Indonesia.

To help achieve this year?s coal production target, the paper said that PTBA has allocated Rp 4 trillion worth of capital expenditure.

PTBA exports about 55 percent of its coal production, while the remainder is allocated for the domestic market. The company exports its higher CV coal, while medium coal is dedicated for the domestic market.

Adib said that the company has recently obtained new sales contract from an Indian buyer. He added that PTBA is also seeking new export markets including The Philippines, Bangladesh, Sri Lanka, Malaysia and countries in the Middle East.

Adib said that PTBA has also allocated $36 million to acquire new coal assets including in Australia. (*)