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.