PT Golden Energy Mines Tbk (IDX: GEMS), a coal mining subsidiary of the diversified Sinar Mas Group, announced last week that its production has risen by 39 percent to 12.5 million tonnes (MnT) in the first half of this year, as compared against 9 MnT in the corresponding period of last year.
The company’s corporate secretary Sudin Sudirman stated that GEMS is targeting to produce 20 MnT of coal by the end of this year. Thus, in the first six months of this year, GEMS has already produced around 62.5 percent of its total full year production target.
Nevertheless, the company is currently requesting the Ministry of Energy and Mineral Resources for a revision of its coal production target to reflect the better-than-expected production in the first half of this year — because there is a potential increase in production at other mines.
Further, GEMS has also targeted to complete two projects out of the three that were planned earlier for this year, which includes increasing crusher plant and loading capacity of barge loading conveyor.
Currently, the majority of the company’s exploration activities are performed by PT Borneo Indobara, located in South Kalimantan. Other mining exploration activities are from PT Kuansing Inti Makmur and PT Barasentosa Lestari.
According to Sudin, one of the advantages possessed by the Indobara Borneo coal mine is the type of coal that is suitable for the market and the sulfur level is low, coupled with hauling road that is close to the port.
Until July 2019, exploration activities in Indobara Borneo included three main activities namely preproduction exploration drilling, development exploration drilling, and geotechnical drilling. The drilling activities in July comprised of pre-production exploration drilling in the South Girimulya area and geotechnical drilling in the South Girimulya and Kusan Bawah areas.
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