Indonesia-based coal mining company Mitrabara Adiperdana Tbk PT (IDX: MBAP) stated that it has no plans to revise its coal production target this year despite the ongoing spread of the corona virus pandemic.
Mitrabara will continue to produce coal in accordance with the specified targets, said Chandra Lautan, the company’s Corporate Secretary, adding that “The production target is still around the same at around 4 million tons (MnT), a deviation of approximately 10%”.
Chandra also ensured that capital expenditure (capex) allocation had been set at the beginning of the year and to date there has been no change in capex allocation for 2020. However, Chandra is still reluctant to disclose the exact capex budgeted figures.
Regarding the spread of the corona virus, Chandra admitted that Mitrabara had taken various preventive measures to prevent transmission, both at the head office and at the mining site. He also ensured operational activities continue as usual and there are no changes whatsoever. “So far there has been no significant impact on mining operations”, he said.
The company said that its coal production target of 4 MnT this year is same as last year’s target, amid weakening price of the commodity. Chandra said earlier that the company will continue to focus on improving cost efficiency to help cope with the weak coal price situation.
As of September 2019, the company produced a total of 3.12 MnT of coal, 23 percent higher than in the corresponding nine-month period of 2018. The company booked revenue of USD 196.63 million. Mitrabara is confident that China’s plans to reduce coal import would not affect the company’s sales to the key export market. In the nine-month period ending September 2019, the company’s coal exports to China accounted for USD 59.63 million.
“Mitrabara’s professional marketing team will be able to sell the entire coal output”, Chandra further said.
Aside from export to China, the company also exports coal to other markets including South Korea and Malaysia, apart from selling output in the domestic Indonesian market. Elsewhere, Chandra said that the rainy season would not affect the company’s coal production target this year. “The regions where Mitrabara operates have high rainfall rate, so we are used to cope with the condition”, he said.
Mitrabara produces high calorific value coal (CV) of 5,000-5,700 kcal/kg, with low sulfur and ash content. The company started production in 2008 on 2,960 hectares of mining sites in Malinau, North Kalimantan Province.
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