PTBA targets 10-15 increase in coal production

Petromindo|Dasir

IDX-listed coal giant PT Bukit Asam Tbk (PTBA) aims to increase coal production next year by 10-15 percent from the estimated 23-24 million tons this year, Kontan reported on Monday.

The paper quoted PTBA President Director Arviyan Arifin as saying that the 2018 production target will depend on the completion of expansion of railway capacity to transport the company?s coal to the port.

The paper said that state-owned railway operator PT Kereta Api Indonesia (KAI) and PTBA are teaming up to develop new railway projects from Tanjung Enim mine in South Sumatra to Prajan and Kemasan. KAI is also planning to expand the railway capacity form Tanjung Enim to Tarahan Port and from Tanjung Enim to Kertapati Port. PTBA through subsidiary PT Bukit Asam Tanspacific Railway is also developing a new coal railway from Tanjung Enim to Srengsem.

If the railway projects can be completed, PTBA is optimistic that coal production can be increased by 10-15 percent next year. ?If possible (production growth) is 20 percent. It will depend on the expansion of railway capacity by KAI,? Arviyan said.

He added that PTBA is also seeking to acquire new mines in a bid to expand reserves. He said that PTBA hopes to start realizing the planned acquisition next year. He declined to provide further details. (*)