Indonesia: Bukit Asam’s 9-Months Coal Sales Rise 7.8% Y-o-Y

PT Bukit Asam, Indonesia’s fourth largest coal producer by volume, sold 18.6 MnT of the power-station fuel in the first nine months of this year, rising 7.8% from 17.2 MnT in the same period in 2017, the company said in a statement posted Indonesian Stock Exchange Website, Nov. 14, 2018.

Robust overseas sales helped the country’s state-owned coal miners to boost sales, the company said. Exports rose by 39% in January to September this year, from the same period last year. The company didn’t give details on the export volume.

PT Bukit Asam benefited from the surging global coal prices, weakening rupiah against the US dollar, and China’s stronger appetite for overseas coal as extreme summer heat bolstered electricity consumption.

India’s inability to meet its coal need from its own production and rising South Korea’s demand also helped the company sold more coal.

The company has also stepped up sales of high-calorific value coal to premium markets starting Q3 of this year, the statement said.

In the January to September, PTBA managed to sell coal at an average price of IDR (Indonesian Rupiah) 841,655/MT (USD 57.02), a 13% increase from IDR 745,775/MT (USD 50.53) in January to September 2017.

With higher coal prices, PTBA booked net income of IDR 3.93 Trillion (USD 266.43 Million) in January to September period this year, up from IDR 2.63 Trillion in the first nine months of 2017.

Bukit Asam mined 19.8 MnT of coal in January to September this year, a 16.4% increase from 16.91 MnT in the same period a year ago. The company targets to produce 25.54 MnT of coal for 2018, up from 24.2 MnT in 2017.

To increase coal railway capacity, Bukit Asam has signed an agreement with state-owned railway company PT KAI to develop coal railway network which will have the capacity to transport 60 MnT of coal per year by 2023.

The project will build two new rail tracks. The first rack, serving Tanjung Enim in Sumatra to northern part, it will have 10 MnT per annum capacity with a new port which is expected to start operation in 2023.

The second track, from Tanjung Enim to southern part, will have two lines. The first line with capacity 25 MnT per year is expected to start operation in 2020, while the second line with 20 MnT per year capacity is planned to start operation in 2023.