Toba Bara sees moderate 2013 coal output

By Edgar Subroto

IDX-listed coal miner Toba Bara Sejahtra sees moderate coal output target of between 5.8 and 6.4 million tons of coal in 2013, up from last year?s total coal output of 5.6 million tons.

Toba Bara said that despite the difficult coal market environment in 2012, its coal production rose by 8% from 5.2 million in 2011 to 5.6 million tons in 2012, deriving from 3 of its operating units ie. 4.4 million tons from PT Adimitra Baratama Nusantara (ABN), 1 million tons from PT Indomining (IM), and 300,000 tons from PT Trisensa Mineral Utama (TMU).

This year?s production target is based on the assumption that coal prices will reach the average around USD 90/ton according to Newcastle coal index, Toba Bara said.

Toba Bara did not disclose this year?s target for each coal units, but according to the source when contacted by Petromindo.com, ABN will produce around 4.3-4.5 million tons, IM is expecting to produce around 1-1.3 million tons and TMU is targeted to produce 500,000-1 million tons for this year.

The company is also targeting to spend US$27 milion for capital expenditure (capex) this year, up $10 million compared to last year?s capex.

The capex for this year comprises among others for coal hauling construction (TMU to IM), new coal processing plant in IM, conveyor improvement, ABN?s underpass development, exploration activities and land compensation.

Editing by Er Audy Zandri