Resource Alam profits rise 170%

Coal miner PT Resource Alam Indonesia (KKGI) reported on Wednesday a 170 percent increase in net profits to Rp 450.2 billion (US$48.94 million) last year on the back of a sharp increase in coal prices in the international market.

Resource Alam saw net sales more than double to Rp 2.13 trillion in 2011 as they grew by 119.49 percent, Jakarta Post daily reported today.

Cost of goods sold also rose due to the surge in sales, but at a slower rate of 100 percent to Rp 1.26 trillion, or almost double from 2010.

Resource Alam announced in February it had acquired a controlling stake in four coal-mining firms in East Kalimantan worth a total of $7.9 million a move that the company considered ?in alignment with Resource Alam?s long-term objective to become one of Indonesia?s major coal producers?.

The company?s coal output is expected to reach 6 million tons this year, compared with the 340 million tons of coal produced nationwide. (*)