PT Indo Tambangraya Megah Tbk (IDX: ITMG), targeting the coal production around 19.9 million tones (MT) in this year or up 8.2 percent  from 2019' realization of 18.4 MT of coal - Photo by the Company

JAKARTA (TheInsiderStories) – Coal miner, PT Indo Tambangraya Megah Tbk (IDX: ITMG), targeting the coal production around 19.9 million tones (MT) in this year or up 8.2 percent  from 2019′ realization of 18.4 MT of coal. Actually, the production lower than the initial target at 19.1 MT of coal.

The miner sales are still dominated by the Southeast Asia region, India and Pakistan with total valued US$440.04 million. The sales fell by 37.5 percent compared to 2019 which reached of $704.19 million. Then, the sales to Taiwan, China, Hong Kong and Korea also dropped by 36.9 percent to $263.77 million from the previous year of $418.05 million.

Then, sales to the Japanese market was $218.80 million or decreased by 24.61% percent and sales to Australia down 34 percent to $8.75 million. In the domestic market, the sales volume of Indo Tambangraya amounted to $253.96 million, or decreased by 12.5 percent from 2019 worth of $290.25 million.

In 2020, the company booked a net profit of $39.47 million or decreased by 69.5 percent from a year ago worth of $129.42 million. The net sales also fell by 30.9 percent from $1.71 billion to $1.18 billion. Due to the gloomy coal business amid the pandemic, the miner decided entered mineral resources businesses.

For the planned, Indo Tambangraya will use the capital expenditures has prepared US$50 million in this year. According to the president director, Mulianto, the price of coal continues to declined while the demand for the commodities such as gold was rising.

He said, the issuer continues to adapt the global economic uncertainty in order to maintain a decent performance. On the other side, coal supply has been increasing faster than the demand has, making global coal price continue weaker.

He continued, to cope the global economic uncertainty this year and beyond, Indo Tambangraya will focus on several aspects like cost efficiency initiative, business expansion, and leveraging infrastructure network to create business opportunities outside coal operation.

Earlier, minister of energy and mineral resources, Arifin Tasrif, said that the demand for coal in the Indonesian market fell by 20 percent due to the major importer countries policies such as India and China, which prioritize domestic coal production. He emphasized that the COVID-19 outbreak has also resulted in a decline of coal price, global demand, limited access and mobility.

As the impact, he said, the realization of national coal production fell to 362 MT of coal in 2020, from a year ago reached 409 MT of coal. MEMR data notes that the realization of coal production in nine months of 2020 is equivalent to 66 percent of the national coal production target at 550 MT of coal.

To help the coal producers, Tasrif has urged the coal producer to prioritize the fulfillment of domestic primary energy needs to support the government’ renewable program. He also decided to continue the domestic market obligation at least 25 percent of the total coal production in 2020.

These provisions are contained in Ministerial Decree Number 261 of 2019 concerning Fulfillment of Domestic Coal Needs for 2020. In the last four months, coal prices have rebounded after experiencing pressure throughout 2020 due to the COVID-19 pandemic.

In October the price stood at $51 per MT of coal, November $55.71 a MT of coal, December $59.65 per MT of coal, and January 2021 at $75.84 a MT of coal.

Written by Editorial Staff, Email: theinsiderstories@gmail.com