Semen Baturaja to double coal consumption

By Thomas R. Sembiring

IDX-listed cement maker PT Semen Baturaja Tbk aims to double its coal consumption in 2017 when a new production facility comes on stream.

President Director of Semen Baturaja, Pamudji Rahardjo said Tuesday that a new cement production facility (Baturaja II) in Ogan Komering Ulu Regency, South Sumatra, with a capacity of 1.85 million tons per year is expected to start operation in the first half of 2017.

The company?s production capacity currently stands at 1.75 million tons per year, with coal consumption of about 250,000 tons.

Once the new cement plant starts production, Pamudji said that the company?s annual coal consumption will double to around 500,000 tons.

He added that coal and energy account for the highest contributor to production cost, about 30 percent.

Editing by Reiner Simanjuntak