Indonesian coal miner PT Indo Tambangraya Megah Tbk. (ITM) has strengthened its position as the country’s major coal supplier with the acquisition of 100% stake in PT Nusa Persada Resources (NPR).
The coal company added 77 MnT coal reserves of 5500 kcal/kg to its manifold, in a deal which is estimated at USD 30 Million.
NPR which is having a business mining license for a concessional area of 4,291 hectare in Central Kalimantan, would be grouped along with ITM’s three other existing subsidiaries- Bharinto Ekatama (BEK), Trubaindo Coal Mining (TCM), and Tepian Indah Sukses (TIS).
The company has reported that the mine infrastructure is going to be constructed from next year with initial production starting from 2022.
In terms of performance during the first half of CY18, ITM had witnessed higher selling price amidst rainfall slowing down the production.
Average selling price in H1 CY18 was USD 80.9/MT, up 18% Y-o-Y from USD 68.4/MT in the same period last year, largely due to higher demand particularly in China as a result of restricted domestic supply which continued to the beginning of the year.
The company’s net income in H1 CY18 totaled USD 103 Million, slightly lower by 3% from USD 103 Million in H1 CY17.
ITM sold 9.6 MnT coal in the first half period of CY18, lower by 12% than it did in the same period last year.
Japan was the largest buyer of ITM’s coal during the six month period taking 1.7 MnT coal, China was the second-largest coal buyer taking 1.5 MnT coal during the period.
Philippines (1.2 MnT), India (1.1 MnT), Thailand (0.6 MnT) and South Korea (0.5 MnT) were the other major export destinations for ITM’s coal in H1 CY18. The company had sold 1.1 MnT coal to the domestic Indonesian market while the remaining quantity was shipped to other countries in East, South and Southeast Asia.
Low sales volume was as a result of lower output due to heavy rainfall. ITM produced 9.3 MnT coal in the first half. The company has set an annual production target of 22.5 MnT for CY18.
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