Indonesia-based major coal miner Adaro Energy Tbk PT (IDX: ADRO) stated that the company’s coal export activities to India, among other destination countries, are still functioning normally, despite the Indian government implementing a stringent lockdown policy for 21 days to prevent the spread of the deadly corona virus.
India is a vital export destination for Adaro, besides China and East Asia. Last year, Adaro’s coal sales reached 59.18 million tons (MnT), with around 15% comprising sales to India.
“At present there is no impact and shipments are still going according to schedule”, Febriati Nadira, Adaro Energy’s Corporate Communication Head, stated today.
She said that in the midst of the corona virus outbreak the company did not plan to change capital expenditure and production targets. This year Adaro will spend capital expenditure of USD 300 – 400 million from internal cash reserve. Febriati explained that this year’s capital expenditure budget will be used for regular maintenance. In addition, capex will also be used for the development of Adaro MetCoal.
In terms of operational performance, Adaro targets coal production to reach 54 – 58 MnT this year. The peel ratio is targeted at 4.30 times, while the realization of Adaro’s coal production last year reached 58.03 MnT or 7% higher than the realization of production in 2018.
As for the current conditions, Adaro will continue to carry out exploration activities as planned in its mines and will continue to focus on efforts to improve operational excellence. The company will also focus on controlling costs and efficiency and executing strategies for business continuity.
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