Renuka revises downward coal output target for this year
Tuesday, September 27 2016 - 12:59 AM WIB
IDX-listed coal mining firm PT Renuka Coalindo Tbk (Renuka), which operates mines in Jambi Province, has drastically revised downward coal production for this year from the initial target of 600,000 tons to 255,000 tons as the company remains concerned with lingering volatility in the price of the commodity.
Renuka President Director Shantanu Lath said on Monday that although price has appreciated by around 30 percent so far this year, there remains question whether the positive price development can be sustained next year following reports that China will reduce import in January.
As such, Lath said that Renuka?s production next year is likely to be maintained at around 255,000 tons. But he quickly added that the company will increase production next year if the price of its coal with calorific value of 3,400 kcal/kg (GAR) continues to increase to around US$23 per ton from current level of around $22 per ton. Last year, Renuka produced 250,000 tons of coal.
He could not disclose the coal production performance in the first semester of this year, but suggested that last year?s first-half output was only 60,000 tons.
Meanwhile, Renuka general shareholders meeting on Monday appointed Shivanand Daddimani as the new Finance Director of the company.
Editing by Reiner Simanjuntak