PT Adaro Energy Tbk (IDX: ADRO) targeting the sales and coal production around 52 - 54 million tones of coal in this year and prepared funding US$300 million for business expansion - Photo: Special

JAKARTA (TheInsiderStories) – Indonesian coal miner, PT Adaro Energy Tbk (IDX: ADRO) targeting the sales and coal production around 52 – 54 million tones (MT) of coal in this year, the management announced on Tuesday (02/17). The issuer also prepared capital expenditure US$300 million and earning before interest, tax, and deduction is estimating around $750 – 950 million during 2021.

Last year, the company sold 54.14 metric tones (MT) of coal or dropped by 9 percent from a year ago. The coal production recorded 54.53 MT of coal rises, lowered by 6 percent compared to 2020 at 54.14 MT of coal. In the fourth quarter only, the producer owned by Thohir family produced 13.43 MT of coal and sold 13.39 MT of coal, down 3 percent and 8 percent, respectively, compared to the same quarter in 2019. 

In detail, the unit, PT Adaro Indonesia produced 46.75 MT in 2020, a 9 percent decrease compared to 2019. Then, total coal production of Balangan Coal Companies recorded at 4.58 MT of coal, fell by 8 percent in annual basis. Furthermore, Adaro Metcoal Companies produced 1.88 MT of coal, rose by 72 percent from 2019 and Mustika Indah Permai 1.31 MT of coal.

Then, Kestrel Coal Mine produced 5.66 MT of coal and sold 5.97 MT of coal or lowered 16 and 9 percent, respectively. And, PT Saptaindra Sejati’ coal production volume was also falling 16 percent to 41.48 MT of coal.

At the same day, Adaro announced the construction of a new 400 megawatts (MW) coal-fired power plant in Aceh has resumed after being halted early last year because of the COVID-19 pandemic. The $600 million project is being developed by a consortium composed of China’ Datang Overseas Investment, PT PP Energy, and power services company, PT Sumberdaya Sewatama.

Its scheduled the project to be completed in late 2023 and begin commercial operations in 2024. The power plant is expected to consume at least 1.2 MT of coal per annum and 90 percent of which will be sourced from Kalimantan.

The management of Adaro, said the Construction was halted in March last year because of the pandemic. The project was originally scheduled for completion in 2021 but has been delayed by land issues and other legal constraints. The plant will operate as a base-load facility and to alleviate electricity shortages in the Aceh Jaya, West Aceh, Southwest Aceh, and Nagan Raya areas.

The project is part of the Indonesian government’ 35GW power generation program. It will operate as an independent power producer with a 25-year supply contract starting from its commercial operation date under a power purchase agreement between state power producer, PT Perusahaan Listrik Negara and the consortium partners.

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