PTBA target 2014 sales volume to rise by 38%

IDX-listed coal giant PT Bukit Asam Tbk (PTBA) said sales volume in 2014 was projected to increase by 38 percent to 24.7 million tons from 17.8 million tons in 2013 in line with the company?s strategy to prioritize export of high calorific value coal.

The company said in a statement received Thursday that export in 2014 was targeted to increase by 40 percent to 13.5 million tons from 9.6 million tons last year. Export this year is forecast to account for 55 percent of the sales volume, while sales to the domestic market 45 percent.

The targeted sales volume will primarily come from own production of 19.80 million tons, which comprises of 18.65 million tons from the Tanjung Enim Unit (UPT), and 1.15 million tons from subsidiaries PT Internasional Prima Coal (IPC) and PT Batubara Bukit Kendi. The remainder will come from purchases by subsidiaries including 3.3 million tons from PT Bukit Asam Prima, and 0.68 million tons from PT IPC.

To support the sales volume target, the company is optimistic to be able to increase the capacity of its coal rail to transport coal from the mines to the Tarahan Port in Lampung, and Kertapati Port in Palembang. In the second semester of this year, rail company PT Kereta Api Indonesia has added 230 new rail cars and 44 new locomotives.

Editing by Reiner Simanjuntak