Bumi Resources to increase coal output by 40%<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Publicly listed PT Bumi Resources, the country's largest coal
\nproducer, said over the weekend that it had set a target of
\nincreased coal output at around 40 percent this year, taking
\nadvantage of a rise in global coal prices.<\/p>\n
Bumi finance director Eddie J. Soebari told The Jakarta Post
\nthat the company was planning to produce around 43 million tons,
\nup from 30.6 million tons last year.<\/p>\n
He said that about 25 million tons of the company's total coal
\nproduction this year would be derived from its newly acquired
\nsubsidiary PT Kaltim Prima Coal (KPC), and the remaining 18
\nmillion tons from its other unit PT Arutmin Indonesia.<\/p>\n
"The increase in our production is aimed at meeting demand
\nfrom several countries who previously relied on China, and also
\nto take advantage of the increase in global coal prices, which we
\nexpect to soar by 20 percent this year," said Eddie.<\/p>\n
Bumi has estimated that coal prices this year could reach an
\naverage of around US$35 to $38 per ton for high quality coal.<\/p>\n
Indonesian coal producers will benefit by the decision from
\nChina, the world's largest producer and consumer of coal, which
\nhas decided to limit its coal exports this year due to a serious
\ncoal shortage at home.<\/p>\n
China needs coal for 70 percent of its power plants, expected
\nto consume at least 900 million tons of coal this year.<\/p>\n
Due to the shrinking coal supply from China, several countries
\nsuch as Japan, South Korea, Taiwan and India have been seriously
\nhurt, not only in terms of supply but also in the increasing
\nprice of coal due to the limited supply.<\/p>\n
Bumi said that it was expecting to plug the shortage of coal
\nin Japan, South Korea and in several eastern European countries
\nthis year.<\/p>\n
Elsewhere, Bumi head of investor relations Martinus Peter said
\nthat the company's sales revenue was projected to reach $1.08
\nbillion this year, up from an estimated of $704 million last
\nyear.<\/p>\n
Bumi becomes the country's largest coal producer after it
\nacquired KPC shares from Anglo-Australian mining firm Rio Tinto
\nand Anglo-American energy giant BP for $500 million last year.
\nRio Tinto and BP each own a 50 percent stake in KPC.<\/p>\n
KPC operates a huge coal mining site in Sangatta, Kutai Timur
\nregency, in East Kalimantan. Some 96 percent of the company's
\nhigh quality coal is exported to international markets,
\ngenerating around $450 million in revenue each year.<\/p>\n
According to the Indonesian Coal Mining Association (APBI),
\nciting the Business Monitor International, coal production from
\nIndonesia in 2004 is estimated at around 119.7 million tons, up
\nfrom 109.3 tons in 2003 and 103 million tons in 2002.<\/p>\n
Seventy percent of Indonesia's coal production goes toward
\nexport.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bumi-resources-to-increase-coal-output-by-40-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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