PT Tambang Batubara Bukit Asam Tbk : PTBA TARGETS 30 PERCENT GROWTH OF COAL PRODUCTION

STATE-owned coal miner PT Bukit Asam Tbk (PTBA) targets to produce 24 tons of coal. The number of production increases when compared to the previous production which was around 18 tons.

'Our production this year is targeted to increase as much as 30 percent,' PT Bukit Asam president director Arviyan Arifin said after signing a cooperation agreement to transport 130.1 million tons of coal for the period of 2017 to 2021 with President Director of PT KAI Edi Sukmoro in Jakarta on Friday, June 9.

Arviyan added that PTBA allocates 60 percent of the production yield to domestic consumption, while the remaining will be exported to several countries. He added that new countries have been added as new markets including Bangladesh, the Philippines, and Sri Lanka.

'Those are the countries which begin to build a coal-fired power plant (PLTU). We seized the opportunity and do not let other countries get ahead of us,' he said.

In terms of the price of the targeted coal, Arviyan claimed that the price of coal could not be predicted since it is highly volatile throughout the year.

PTBA, he added, will continue to push coal production since there are around 3 billion tons of coal in the mine. 'So if we produce 50 to 60 million tons a year, it will deplete in the next 50 years,' he explained.

In the future, said Arviyan, not only cooperate with PT KAI, he wants to involve PLN as a company with an interest in the supply of coal. So, he continued, each company can secure their respective interests ie PLN need not be confused to find coal supply, PT Bukit Asam also got a definite target market, thus PT KAI will become a means of transportation.

'We'll just count the business count. If it's like this synergy will be more visible,' he continued.

Moreover, he said, PLN needs coal now to reach 180 million tons. So, even if the company can produce 60 million tons of new needs are fulfilled only a third. 'They definitely need,' he said.

In line with the target, PT KAI as a partner in coal transportation from PTBA mining site in Tanjung Enim, South Sumatra to Tarahan Port in Bandar Lampung and Kertapati Dermaga in Palembang, also plans to increase its capacity to support the mining company.

'Our plan for transporting coal is indeed a bit aggressive. From Tanjung Enim to Tarahan amounted to approximately 50 million tons, while to Kertapati of 30 million to 35 million tons. It's very aggressive but with cooperation it can be achieved,' he explained.

He said the plan was conceived in line with the high demand for coal-fired power plants. 'Because this is a demand that can not be postponed. Power plant is on, if we do not support primary energy then there is no point,' he said. CAESAR AKBAR | ALI HIDAYAT

Source: www.tempo.co