ITMG’s Subsidiary Targets 7.3 Million Tons of Coal Production in 2025

PT Indominco Mandiri, a subsidiary of PT Indo Tambangraya Megah Tbk (ITMG), is targeting realized coal production of 7.30 million tons in 2025.

This target is set against actual output of 6.46 million tons in 2023 and 7.35 million tons in 2024.

Head of Mining Engineering at PT Indominco Mandiri, Eddy Susanto, said the target has been aligned with available reserves across three areas: East Kutai, Kutai Kartanegara, and Bontang in East Kalimantan.

“Right now our reserves are gradually depleting. That’s why we also have to manage the (production) target,” Eddy told Kontan, Wednesday (Sept 24, 2025).

Even so, the 7.30 million-ton target is a revision upward from the initial plan of 6.9 million tons for this year.

Beyond thinning reserves, Eddy said the company also weighed post-production technical obligations such as reclamation and environmental restoration. Higher production would require equally higher reclamation efforts by the company.

Meanwhile, the company’s coal contract of work (PKB2B)—under which it has operated since 1997—will expire in 2028.

“Our hope is that, at the end, we can achieve a soft landing as we enter the closure phase,” Eddy said.

For 2026 and 2027, PT Indominco Mandiri is targeting coal production of 8 million tons and 7.10 million tons, respectively.

Although the contract is nearing expiry, Eddy added that the company plans to extend and convert the PKB2B into a Special Mining Business License (IUPK).

The IUPK framework is the modern format for mining agreements between the government and the private sector, covering former PKB2B areas or state reserve areas, governed by Law No. 3 of 2020 on Mineral and Coal Mining.

“Why? Because there are still remaining reserves. At present, around 45 million tons (of coal) remain, and it would be a shame to leave them,” Eddy said.

This would also allow the company to continue several underground projects that have already been initiated.

Source: https://investasi.kontan.co.id/news/anak-usaha-itmg-ini-bidik-produksi-batubara-730-juta-ton-di-2025

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