PT Borneo Olah Sarana Sukses (BOSS), a small-size coal producer, announced on Friday that it was expecting to increase its coal output from last year levels, that would help it to improve its financials, said Widodo Nurly Sumady, finance director of the company in a press statement.
“We will boost our coal output and investment this year,” said Widodo in a press statement a copy of which was sent to CoalMint. Widodo did not provide the value of the investment and growth in coal output.
Separately, M. Adityawarman, an investor relations official at the company, said that the company expects to produce 800,000 MT of coal of high-calorific value this year. That would double than it had expected in 2018. The company had forecast to produce 400,000 MT of coal last year.
Borneo Olah Sarana Sukses, (BOSS) which made its capital market debut in the Indonesian Stock Exchange in February last year, operates as a coal miner. The company supplies high grade quality coal with low sulphur and low ash to its premium customers. It claims to produce high CV of 6,400 GAR Kcal/kg with sulphur in the range of 0.3-0.4% and ash less than 5%.
The company sells its products mainly to Japanese and South Korean companies as they seek coal with high calorific value, the statement said.
Adityawarman said that the company had set aside as much as USD 10 Million as capital expenditure this year. The company will use the bulk of the funds to finance various projects including construction of jetty at Mahakam riven in Kalimantan island, barge loading conveyor and purchase dump truck to transport the coal to the port.
Widodo said that the company would benefit from a stable global coal price with high calorific value.
“Demand remains strong for our (high quality) product especially from Japan,” said Widodo.
Widodo claimed that the company had recorded 182.2 Billion Indonesian Rupiah in revenue and 30.22 Billion Indonesian Rupiah in net profit in the first nine months of 2018.
“With an increase in our coal production, our revenue will increase this year,” Widodo said.
Borneo Olah Sarana has its coal mining license in the resource-rich Kalimantan island.
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