Indonesia-based coal mining companies are seeking to revise their production targets for this year — Bukit Asam Tbk PT (PTBA) plans to downsize its annual production target, while Bumi Resources Tbk PT (BUMI) aims to increase production.
PTBA is currently reviewing its 2020 work and budget plan (RKAB). “Our production target is likely to be reduced compared (to the target set in the original) RKAB 2020. We are simulating the new production target very carefully”, PTBA corporate secretary, Hadis Surya Palapa, said recently.
PTBA initially planned to produce 30.3 million tons (MnT) of coal in 2020, or 4 percent higher than the realized volume of 29.1 MnT in 2019. The company set sales volume target of 29.9 MnT in 2020, of which 21.7 MnT were dedicated for the domestic market and 8.2 MnT for export markets.
Meanwhile, Bumi is waiting for the government’s approval of its RKAB revision. “We are hopeful for a favourable consideration by the authorities on the new RKAB figures this month”, said director and corporate secretary of Bumi, Dileep Srivastava.
The government granted production quota of 52.6 MnT in 2020 for Bumi’s subsidiary PT Kaltim Prima Coal and 22.9 MnT for another subsidiary PT Arutmin Indonesia. Accumulatively, Bumi may produce up to 75.5 MnT of coal this year.
Meanwhile, KPC has production capacity of between 60-65 MnT, while Arutmin has production capacity between 28-30 MnT in 2020. “Bumi’s full year present guidance is 85 to 90 MnT of coal”, Srivastava said.
In the first quarter 2020, Bumi produced 20.8 MnT of coal or 6 percent higher than the previous same period at 19.7 MnT. “In first quarter 2020, Bumi achieved 21.5 MnT of sales, so (we are) on track to prorate guidance”, Srivastava said.
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