The Jakarta Post | Business | Wed, September 19 2012
Publicly listed coal miner PT Indika Energy is expecting its new subsidiary PT Multi Tambangjaya Utama to start production and raise the company’s output in the first quarter of next year, at the latest.
Indika president director Arsjad Rasjid said on Tuesday, the company was working on regulatory approval and infrastructure development, for Multi Tambangjaya to operate at maximum capacity.
“According to the plan, production will begin in the first quarter next year as anticipated. But we’re pushing to start in the fourth quarter,” Arsjad said.
Indika, through its subsidiary PT Indika Indonesia Resources, sealed a deal in February to acquire 85 percent of Multi Tambangjaya from Asia Thai Mining Co. Ltd. for US$132 million.
Indika also took over Multi Tambangjaya’s coal distribution license from International Coal Trading Ltd. in May.
Multi Tambangjaya now has concessions for 24,970 hectares of bituminous thermal and coking coal in Barito Selatan, Barito Timur and Barito Utara in Central Kalimantan. The company has total reserves of 75.2 million metric tons and coal reserves of 40.6 million metric tons.
Arsjad said Multi Tambangjaya’s initial production would be between one and two million metric tons if the subsidiary started production next year.
The company previously said that it expected around 300,000 metric tons of coal from Multi Tambangjaya in the fourth quarter of the year.
Indika, the country’s third-largest coal miner, expects to extract around 36 million metric tons by the year end.
As many as 34 million metric tons come from Indika’s 46 percent owned subsidiary PT Kideco Jaya Agung, while the remaining 2.3 million come from Indika’s 50-percent-owned PT Santan Batubara.
“Despite volatile coal prices, we still have to supply to our buyers,” Arsjad said, adding that almost all of Indika’s coal was already under contract.
Coal miners are suffering from a decline in coal prices and weakened demand triggered by the global slowdown.
The Indonesia’s coal price reference (HBA) stood at $86.21 per metric ton in September. The price has declined from $109.29 in January, but is still higher than the August price of $84.65.
“The decline has certainly affected us; however, we are trying to reduce costs,” Arsjad said.
Indika reaped $334 million in total revenue in the first year half, up by around 46 percent compared to $228 million in the same period last year. The increase was mainly through revenue from contracts and services.
—JP/Raras Cahyafitri
Publicly listed coal miner PT Indika Energy is expecting its new subsidiary PT Multi Tambangjaya Utama to start production and raise the company’s output in the first quarter of next year, at the latest.
Indika president director Arsjad Rasjid said on Tuesday, the company was working on regulatory approval and infrastructure development, for Multi Tambangjaya to operate at maximum capacity.
“According to the plan, production will begin in the first quarter next year as anticipated. But we’re pushing to start in the fourth quarter,” Arsjad said.
Indika, through its subsidiary PT Indika Indonesia Resources, sealed a deal in February to acquire 85 percent of Multi Tambangjaya from Asia Thai Mining Co. Ltd. for US$132 million.
Indika also took over Multi Tambangjaya’s coal distribution license from International Coal Trading Ltd. in May.
Multi Tambangjaya now has concessions for 24,970 hectares of bituminous thermal and coking coal in Barito Selatan, Barito Timur and Barito Utara in Central Kalimantan. The company has total reserves of 75.2 million metric tons and coal reserves of 40.6 million metric tons.
Arsjad said Multi Tambangjaya’s initial production would be between one and two million metric tons if the subsidiary started production next year.
The company previously said that it expected around 300,000 metric tons of coal from Multi Tambangjaya in the fourth quarter of the year.
Indika, the country’s third-largest coal miner, expects to extract around 36 million metric tons by the year end.
As many as 34 million metric tons come from Indika’s 46 percent owned subsidiary PT Kideco Jaya Agung, while the remaining 2.3 million come from Indika’s 50-percent-owned PT Santan Batubara.
“Despite volatile coal prices, we still have to supply to our buyers,” Arsjad said, adding that almost all of Indika’s coal was already under contract.
Coal miners are suffering from a decline in coal prices and weakened demand triggered by the global slowdown.
The Indonesia’s coal price reference (HBA) stood at $86.21 per metric ton in September. The price has declined from $109.29 in January, but is still higher than the August price of $84.65.
“The decline has certainly affected us; however, we are trying to reduce costs,” Arsjad said.
Indika reaped $334 million in total revenue in the first year half, up by around 46 percent compared to $228 million in the same period last year. The increase was mainly through revenue from contracts and services.
—JP/Raras Cahyafitri
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