Resources Alam to continue focus on export

Petromido|Lucky

IDX-listed coal mining firm PT Resources Alam Tbk will continue to focus selling its coal in the export market despite luring opportunity in the home market amid massive development of coal-fired power plant projects, Kontan reported on Wednesday.

The paper quoted Resources Alam President Director Pintarso Adijanto as saying that the company?s coal output is dominated by coal with caloric value of 5,000 kcal/kg, thus is more suitable for consumers overseas.

He said that the company has been seeking new export markets such as Japan and Spain since last year.

Resources Alam exports about 95 percent of its coal output to markets such as China, South Korea, India, Taiwan, Philippines, Thailand and Malaysia. Domestic market only accounts for about 5 percent. While in the past China accounted for 70 percent of its market, currently no single market exceeds 30 percent, Pintarso said.

Resources Alam plans to increase coal production this year by 28.57 percent to 4.5 million tons from 3.5 million tons last year. The company plans to start production at its Loa Haur mine in Central Kalimantan, hopefully in September or October with initial output target of about 1 million tons, Pintaro said, adding that the company is currently in the process of acquiring the required permit.

He added that the company is open to acquisition opportunities. The company in 2012 acquired four greenfield mines in East Kalimantan.

Resources Alam has allocated US$1.5 million for capital expenditure this year, mostly for infrastructure repair and heavy equipment purchase. (*)