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