Renuka to increase sales volume to 600,000t next year
Tuesday, September 16 2014 - 01:11 AM WIB
IDX-listed coal mining company PT Renuka Coalindo Tbk said that production and sales volume next year is projected to increase to 600,000 tons next year.
The company said in a filing with the Indonesia Stock Exchange Monday that output for this year is estimated to reach 550,000 tons, or a 70 percent jump from last year. ?Higher production enabled us to break-even at the mine,? it said, but added that despite having managed to slash overheads, margins remain low.
Renuka said that it was seeking to expand its domestic market in a bid to achieve the 2015 sales volume target.
Elsewhere, the company is hopeful that coal price to reach its bottom this year on the expected global economic recovery and rising demand from India, one of Indonesia major coal export markets.
Through its subsidiary PT Jambi Prima coal, Renuka operates a coal concession in Sarolangun, Jambi, which is estimated to have coal reserves of 9.26 million tons, and resources of 120.3 million tons.
Earlier in July, Renuka acquired 90 percent stake in PT Surya Global Makmur, which operates a 2,600-hectares concession, also in Sarolangun.
Editing by Reiner Simanjuntak