The Jakarta Post | Business | Mon, November 26 2012
State-owned coal miner PT Bukit Asam (PTBA) has cut the target of its sales volume this year amid the decline in coal demand from overseas buyers.
The company estimates that its coal sales volume will be around 16.5 million metric tons by year end, lower than the previous projection of 18 million, according to president director Milawarma. The company’s sales volume reached 11.4 million metric tons during the first nine months of the year.
“Although the sales volume will be lower than expected, we are sure that revenue this year will be higher compared to last year because PTBA has been focusing on the sales of high-grade coal since the second half of the year,” Milawarma said.
PTBA’s revenue last year stood at Rp 10.58 trillion (US$1.1 billion).
According to Milawarma, PTBA has stopped the export of medium and low rank and only exports high grade coal that is more than 6,300 in calorie.
“The decrease of the high calorie coal price is not as bad as the medium calorie. We sell to users, who are fanatic about PTBA’s coal quality, such as those from Japan and Taiwan, who care less about price as long as they get good quality,” Milawarma said.
“PTBA only sells medium and low calorie coal to the domestic market,” he added.
Coal miners are suffering from declining commodity prices as the global economic slowdown has caused a sharp decline in demand. Indonesia’s coal reference price (HBA) stood at US$81.44 per tons in November, a 34 percent drop compared to $109.29 per ton in January 2012.
Milawarma cited that PTBA’s high calorie sales reached about 45 percent from a previous level of around 35 percent.
PTBA now has operations in South Sumatra and Kalimantan with a combined coal reserve of 1.99 billion tons and resources of 7.29 billion tons in a 91, 832-hectare area. Its products have calories ranging from 5,300 to 7,600 air dried basis (ADB).
Next year, Milawarma said that the company expected to see a 15 to 20 percent increase in sales volume. Given this year’s figure of 16.5 million metric tons, PTBA’s sales volume next year will be around 18.97 million to 19.8 million.
—JP/ Raras Cahyafitri
State-owned coal miner PT Bukit Asam (PTBA) has cut the target of its sales volume this year amid the decline in coal demand from overseas buyers.
The company estimates that its coal sales volume will be around 16.5 million metric tons by year end, lower than the previous projection of 18 million, according to president director Milawarma. The company’s sales volume reached 11.4 million metric tons during the first nine months of the year.
“Although the sales volume will be lower than expected, we are sure that revenue this year will be higher compared to last year because PTBA has been focusing on the sales of high-grade coal since the second half of the year,” Milawarma said.
PTBA’s revenue last year stood at Rp 10.58 trillion (US$1.1 billion).
According to Milawarma, PTBA has stopped the export of medium and low rank and only exports high grade coal that is more than 6,300 in calorie.
“The decrease of the high calorie coal price is not as bad as the medium calorie. We sell to users, who are fanatic about PTBA’s coal quality, such as those from Japan and Taiwan, who care less about price as long as they get good quality,” Milawarma said.
“PTBA only sells medium and low calorie coal to the domestic market,” he added.
Coal miners are suffering from declining commodity prices as the global economic slowdown has caused a sharp decline in demand. Indonesia’s coal reference price (HBA) stood at US$81.44 per tons in November, a 34 percent drop compared to $109.29 per ton in January 2012.
Milawarma cited that PTBA’s high calorie sales reached about 45 percent from a previous level of around 35 percent.
PTBA now has operations in South Sumatra and Kalimantan with a combined coal reserve of 1.99 billion tons and resources of 7.29 billion tons in a 91, 832-hectare area. Its products have calories ranging from 5,300 to 7,600 air dried basis (ADB).
Next year, Milawarma said that the company expected to see a 15 to 20 percent increase in sales volume. Given this year’s figure of 16.5 million metric tons, PTBA’s sales volume next year will be around 18.97 million to 19.8 million.
—JP/ Raras Cahyafitri
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