PT Bumi Resources, Indonesia’s largest coal producer, sold 60 MnT of coal in January to September this year, a fall of 4.2% from 62.6 MnT in the same period last year, the company said in an earnings report published on Indonesian Stock Exchange.
The company’s coal production little changed at 62.6 MnT in the first nine months of this year, compared to 62.1 MnT in the same period in 2017, it said the report.
Bumi Resources didn’t give reason for the fall in sales volume.
While sales volume dropped, the company’s averaged coal price rose by 6.3% to USD 59.4/MT in January to September this year, from USD 55.9/MT. The company expects this year’s sales price will be 5% higher than the actual average coal sales price at USD 58/MT.
A brief surge in China’s demand for overseas coal had lifted Indonesian coal benchmark prices to more than USD 100/MT. But the rally in coal prices short-lived as weakening demand from China has knocked prices.
The company expects this year’s price realisation will be higher as it has started to produce high calorific coal from its Arutmin mine after a gap of three years due to resolution of a court dispute with an overseas mining operation.
As much as 4.7 MnT of high quality coals (6300 GAR) are expected to be produced from Arutmin in the full year of 2018 with production is seen at 2 MnT in the last quarter of 2018.
Bumi is also on track in achieving its domestic sales obligation of 25% in 2018. As much as 14.6 MnT of various coal grades have been shipped to state-owned power generating firm, PT Perusahaan Listrik Negara (PLN) in January to September this year, of which 11.9 MnT have been supplied at Government capped benchmark quality coal price of USD 70/MT vs HBA levels (USD 94.1/MT and USD 100.25/MT between Q1 18 to Q318), the company said.
Leave a Reply