JAKARTA (TheInsiderStories) – Coal producer, PT Indo Tambangraya Megah Tbk (IDX: ITMG) collaborating with PT ABB Power Grids Indonesia, a joint venture firm of Japan’ Hitachi and global company’ ABB Ltd., (NYSE: ABB), to work on the first microgrid in Indonesia. The electricity will use by its unit, PT Indominco Mandiri, in Bontang, East Kalimantan.
The new power system is projected to produce 230 Megawatt hour (MWh) of energy from solar cells (Photovoltaic, PV) each year and will reducing CO2 emissions by 192 tones. Mulianto, President Director of the miner, Indominco has a large-scale mining operation in Bontang and produces approximately 12.5 million tones of coal annually.
“This project demonstrated an integration of solar power generation with PowerStoreTM Battery and significantly reduces fuel consumption,” said Massimo Danieli, managing director of Grid Automation, Hitachi ABB Power Grids.
On Dec. 17, 2018, Hitachi and ABB announced the establishment of Hitachi ABB Power Grids Ltd. Hitachi holds 80.1 percent stake in the joint venture company, whose business volume is approximately $10 billion and the remaining hold by ABB.
Beside doing energy sector, last year Indo Tambangraya entered mineral resources businesses due to the gloomy coal business during the pandemic. For the planned, the company prepared capital expenditures of $50 million in this year.
“Yes, we see that possibility to see other mineral products,” said Mulianto by adding during the pandemic, the price of coal continues to declined while the demand for the commodities such as gold was rising.
According to him, the coal supply has been increasing faster than the demand and making global coal price continue weaker. The situation also affected other coal miners such as PT Indika Energy Tbk (IDX: INDY) and PT Bayan Resources Tbk (IDC: BYAN).
In 2020, the companies announced to cut its production target caused the impact of COVID-19. Initially Indika targets the production could reached 30.95 million tones (MT) of coal and Bayan adjusted the production from 31 MT of coal to 26 MT of coal.
As of September 2020, Indo Tambangraya posted a net profit of $39.98 million, dropped by 60.5 percent compared to the same period in 2019 of $101.21 million. The sales also fell by 33.17 percent from $1.30 billion to $871.88 million