PTBA lowers coal output due to transportation snag<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
Publicly listed coal mining firm PT Tambang Batubara Bukit
\nAsam (PTBA) has lowered its output target for 2004 due to
\ntransportation problems.<\/p>\n
PTBA president Ismet Harmaini said the company's 2004 coal
\nproduction target had been revised downward to 9.3 million tons
\nfrom 10.2 million tons, because a collapsed railway bridge was
\nhampering coal delivery from its Tanjung Enim mine in South
\nSumatra to Tarahan port in Lampung.<\/p>\n
\"Coal transportation by train has always been an obstacle for
\nthe company to increase production and meet market demand,\" Ismet
\nsaid at a press conference on Tuesday.<\/p>\n
The state controlled company produced 10.03 million tons of
\ncoal in 2003.<\/p>\n
Transportation problems have forced the company to reduce its
\ncoal supply to the Suralaya power plant, which in turn has
\nreduced the power plant's capacity to supply electricity to the
\nJava-Bali power grid.<\/p>\n
Ismet said the company was currently in talks with state-owned
\nrailway firm PT KAI and power firm PT Indonesia Power, the owner
\nof Suralaya plant, to form a joint venture to improve coal
\ntransportation.<\/p>\n
\"We are working on a proposal to be submitted to the
\ngovernment,\" Ismet said.<\/p>\n
According to the proposal, the capacity of the trains
\ntransporting coal from the Tanjung Enim site to Tarahan port will
\nbe increased to 12.5 million tons per year by 2007, while the
\ncapacity from the mine to Kertapati port in Palembang will be
\nincreased to 2.5 million tons per year.<\/p>\n
The company currently transports a total of 8.35 million tons
\nof coal per year to Tarahan port and Kertapati port.<\/p>\n
Increasing the coal transportation capacity is expected to
\ncost about Rp 1.7 trillion.<\/p>\n
Ismet said the three companies had also agreed to repair the
\nrailway network, with the repair work scheduled to be completed
\nin June.<\/p>\n
Despite the lower output target, the company is maintaining
\nits revenue target for the year at Rp 2.4 trillion due to higher
\ncoal prices.<\/p>\n
\"Despite the lower output, coal prices are high now. So we
\nwill be able to maintain the revenue target,\" Ismet said.<\/p>\n
Coal prices have soared since the end of last year as China
\nhas halted its coal exports while demand has continued to climb.<\/p>\n
Ismet said coal prices now ranged between US$30 and $50 per
\nton compared to $25 per ton last year.<\/p>\n
The company sold 9.91 million tons of coal in 2003, up from
\n9.57 tons in 2002. The company booked revenue of Rp 2.29 trillion
\nlast year, slightly higher than its 2002 revenue of Rp 2.16
\ntrillion.<\/p>\n
The company will pay a dividend of Rp 123.6 billion, or Rp 58
\nper share, for the 2003 fiscal year. This represents 50 percent
\nof the company's net profit of Rp 245.69 billion.<\/p>\n
PTBA and PT Indonesia Power plan to construct two power
\nplants. The first is the coal-fired Banjarsari plant in Lahat,
\nSouth Sumatra, with a capacity of 2 x 100 megawatts (MW).<\/p>\n
Construction of the power plant, with a total investment of
\n$203 million, will begin at the end of this year. PTBA will
\nreceive a 24 percent share of the plant and will supply it one
\nmillion tons of coal per year.<\/p>\n
The second project is a power plant in Pranap, Riau, that will
\nhave a capacity of 2x250 MW. The project will cost about $500
\nmillion and will require a coal supply of up to three million
\ntons a year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ptba-lowers-coal-output-due-to-transportation-snag-1447893297",
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