Bukit Asam sales to grow by 6% this year
Rendi A. Witular, The Jakarta Post, Jakarta
State-owned firm, PT Tambang Batubara Bukit Asam, the country's fifth largest coal mining company, forecasts the revenue from sales will increase by 6 percent this year on the back of higher demand and prices.
The president of the publicly-listed company, Ismet Harmaini, said in a meeting with investors on Thursday that the company's 2004 sales revenue was projected to reach Rp 2.4 trillion (US$287 million), up from an estimated Rp 2.28 trillion last year.
The extra revenue is expected to come from the sale of 10.4 million tons of coal, up from 9.9 million tons last year.
"We forecast that this year's sales will be better, driven mainly by an expected 30 percent increase in coal prices following a recent decision by energy-hungry China to limit its exports and focus on fulfilling local demand," said Ismet.
Bukit Asam projected that coal prices this year would reach between $22 and $38 per ton.
Taking advantage of the higher prices, the company plans to increase its output this year to 9.8 million tons compared to 9.6 million tons last year.
The company booked a Rp 223 billion net profit last year, up 25 percent from Rp 178 billion in 2002.
In order to help increase its coal deposits, Bukit Asam is currently in engaged in a due diligence process to acquire nine coal mining companies in Kalimantan and Sumatra.
The company is also planning to jointly set up a 2 x 100 MW coal-fired power plant with PT Indonesia Power in Banjarsari, South Sumatra, in order to help increase coal sales in the future.
The plant, which is scheduled to start operating in 2008, is estimated to cost around $200 million. The company will have a 24 percent stake in the plant, with 51 percent and 25 percent stakes being taken by Indonesia Power and other investors respectively.
Bukit Asam will supply 1 million tons of coal annually to the plant.
Bukit Asam and Indonesia Power will also team up in another coal-fired power plant project in Pranap, Riau, which will have a capacity of 2 x 250 MW.
The plant, which will cost $500 million, is scheduled to start operating in 2009. Bukit Asam is projected to supply 3 million tons of coal annually to the plant.
Ismet said that selling coal to power plants and the local market was more lucrative than exporting coal. Currently, the company only exports around 22 percent of its coal output, with the remaining 78 percent going to the local market.
Bukit Asam, which was established in 1981, has coal deposits of 7.3 billion tons, or 17 percent of the country's total deposits, and has reserves of 1.5 billion tons.
The government owns 83.7 percent of Bukit Asam total shares, with the remaining 16.4 percent is owned by the investing public.
Elsewhere, regarding the company's plan to purchase shares in coal producer PT Kaltim Prima Coal (KPC), Ismet said that Bukit Asam would not proceed with the plan unless KPC owner PT Bumi Resources agree to sell 51 percent of the shares as required under the government-sanctioned divestment program.