JAKARTA (TheInsiderStories) - The state miner, PT Bukit Asam Tbk (IDX: PTBA), targeting the sales volume around 30.7 million tones (MT) of coals in 2021 from a year ago recorded 26.1 MT of coals, the CEO announced today. The capacity production also rises from 24.8 MT of coals in 2020 to 29.5 MT of coals in this year.
According to the CEO, Arviyan Arifin, virtually, the state-owned firm’ businesses has been affected by the COVID-19 pandemic and the imposition of lockdowns in several export destination countries, such as China and India. He also noted, the average of reference prices throughout 2020 at US$58.17 per MT, the lowest in the last four years.
To support his year’ targets, the coal producer looking downstream coal projects and prepared an investment Rp3.8 trillion (US$264.81 million) to support the business diversification. The South Sumatra-based company has coal gasification project and Bukit Asam Coal Based Industrial Estate in Tanjung Enim.
The issuer joined with energy producer, PT Pertamina and American-based firm, Air Products Chemical Inc., targeting the Dimethyl Ether (DME ) project to start operating in the second quarter of 2024. The agreement was signed on Feb. 11, 2021. The miner also plans to develop a coal activated carbon as raw material.
At the end of 2020, Bukit Asam has signed a deal with Australia’ Activated Carbon Technologies Pty. Ltd., as an off-taker of the products on a long-term basis. Both plans to develop an activated carbon plant in the Tanjung Enim Industrial Estate and will have a capacity production 12,000 tones of activated carbon from 60,000 MT of coals per year.
The other projects are Sumsel-8 Mining Mouth Power Plant with a capacity of 2×620 megawatts (MW ) and need costs of $1.68 billion. The project part of a 35,000 MW project was built by its unit, PT Huadian Bukit Asam Power, a consortium between PTBA and China Huadian Hongkong Co. Ltd.
Then, collaborating with railways company, PT Kereta Api Indonesia, Bukit Asam develop a railway coal transportation project with a capacity of 72 MT of coal per annum starting 2025, including a new line. With PT Pelabuhan Indonesia II, the miner build transporting coal or other commodities through rivers and ports in South Sumatra.
Last year, the manufacturer’ profit shrank by 41.17 percent to Rp2.39 trillion from a 2019 of Rp4.06 trillion due to the weak demand and low coal prices. The revenues also down 20.48 percent to Rp17.32 trillion compared to the same period of last year worth of Rp21.79 trillion.
US$1: Rp14,350
Written by Editorial Staff, Email: theinsiderstories@gmail.com
