Kideco Jaya Agung (Kideco) Submits Contract Extension to the Ministry of Energy and Mineral Resource...
Kideco Jaya Agung (Kideco) Submits Contract Extension to the Ministry of Energy and Mineral Resource...
29 Dec 2022, 09:00 AM 6670

A subsidiary of PT Indika Energy Tbk (INDY), namely PT Kideco Jaya Agung (Kideco), has applied for a contract extension to the Ministry of Energy and Mineral Resources (ESDM).Currently, the holder of the Coal Mining Concession Work Agreement (PKP2B), which will expire on March 13, 2023, is waiting for the results of the evaluation of the contract extension application."Kideco's contract will expire on March 13, 2023. Currently, Kideco has applied for an extension to the Ministry of Energy and Mineral Resources," INDY's Head of Corporate Communications, Ricky Fernando told Kontan.co.id, Thursday (22/12).As is known, the Contract of Work (KK) and PKP2B are given a guarantee of extension to a Special Mining Business Permit (IUPK) as a Continuation of the Operation of the Agreement Contract after fulfilling the requirements.This is contained in Article 169 A of the Mining Law (minerals and coal) which is currently in force, namely Law Number 3 of 2020.Currently, the total area of the Kideco concession is 47,000 hectares (Ha) with an operational area of about 15 thousand Ha. It has not been found out, how much kideco land area after the contract extension will be."Currently, Kideco has applied for a contract extension where a review of the land area will be included," explained Ricky.Arguably, Kideco has played an important role in sustaining INDY's performance in recent years. During January-September 2022, for example, the coal company whose shares are 91% owned by INDY (data September 30, 2022) contributed revenue of US$ 2.21 billion, equivalent to around 70% of INDY's consolidated revenue in the period which amounted to US$ 3.13 billion.Understandably, in terms of operational performance, Kideco is indeed one of the main pillars of INDY's coal production performance, as is the case in 2022.Just so you know, based on Kontan.co.id records, INDY is pursuing a coal production target of around 35.8 million tons. According to the plan, as many as 34 million tons of which will come from Kideco, while the remaining 1.8 million tons will come from PT Multi Tambangjaya Utama (MUTU).In addition to applying for a contract extension, Kideco has also taken steps to carry out production activities next year. Ricky said, Kideco had submitted a Work Plan and Cost Budget (RKAB) to the Ministry of Energy and Mineral Resources."Kideco's production plan is still waiting for approval from the RKAB, but it is expected to be around 31 - 34 million tons," said Ricky.A little information, the performance of Kideco's main top line and bottom line, namely INDY, is compact uphill in the first nine months of 2022.INDY's interim financial report shows that INDY's consolidated revenue increased by 57.15% on an annual basis or year-on-year (YoY) from US$ 1.99 billion in January-September 2021 to US$ 3.13 billion in January-September 2022.According to the climbing revenue, INDY managed to book a profit for the current period attributable to owners of the parent entity aka net profit of US$ 338.39 million in January-September 2022.Previously, INDY posted a loss for the current period attributable to owners of the parent entity aka a net loss of US$ 5.95 million in January-September 2021.Image source: ANTARA FOTO/Nova Wahyudi/nymSource: https://industri.kontan.co.id/news/kideco-jaya-agung-kideco-ajukan-perpanjangan-kontrak-ke-kementerian-esdm

Black & Veatch to design and deliver desal plant for Freeport Indonesia’s Manyar smelter
Black & Veatch to design and deliver desal plant for Freeport Indonesia’s Manyar smelter
29 Dec 2022, 08:00 AM 6223

PT Freeport Indonesia (PTFI) has appointed Black & Veatch to design and manage the delivery of a seawater desalination plant for its Manyar Smelter in East Java, Indonesia, as part of its sustainable development commitments.The seawater desalination plant will support the processing of mine concentrates from the Grasberg mine in West Papua. The new domestic copper smelter and refinery supports Indonesia’s downstreaming strategy to further refine the processed mine concentrates and brings additional economic value to the local community and Indonesia.“Reducing water consumption is critical to our sustainable development commitments. Using alternative water supplies is key to resource conservation. Black & Veatch’s extensive experience with alternative water technologies helps position us for continued sustainable business growth,” said Horst-Dieter Garz, Executive Vice President, Corporate Planning and Business Strategy, PTFI.Black & Veatch, in collaboration with its joint operating agreement (JOA) partner PT Wika, will perform the engineering, procurement, construction and commissioning responsibilities for the seawater desalination plant.“The mining industry plays a critical role in the global shift to a decarbonized and sustainable future. Accessing water from the ocean saves freshwater resources for the local community and ecosystems and ensures a more sustainable, resilient and reliable water future. It also improves efficiencies and reduces operational risks and downtime that affect business profitability,” said Narsingh Chaudhary (pictured), Executive Vice President & Managing Director, Asia Pacific, Black & Veatch. The seawater desalination plant will be located adjacent to the Manyar Smelter Project. It will produce over 1,400 m3/h of desalinated seawater to support the copper smelter and precious metals refinery. Designed to process 1.7 Mt/y of copper concentrate, the $3 billion Manyar Smelter is anticipated to be the world’s largest designed single line copper processing facility.BHP previously hired Black & Veatch to serve as designer and engineer of record on the Escondida Water Supply Expansion (EWSE) project at its Minera Escondida mine in Chile. The project supplies the world’s largest copper mine with 100% desalinated water, removing the need for groundwater.Image source; PT Freeport IndonesiaSource: https://im-mining.com/2022/12/22/black-veatch-to-design-and-deliver-desal-plant-for-freeport-indonesias-manyar-smelter/

Coal Stock secured, PLN Ensures Suralaya Operations During Christmas and New Year Holiday
Coal Stock secured, PLN Ensures Suralaya Operations During Christmas and New Year Holiday
28 Dec 2022, 10:00 AM 5308

PT PLN (Persero) ensures that the operation of the Suralaya steam power plant (PLTU) in Cilegon, Banten during the Christmas and New Year (Nataru) 2023 holiday period is safe. The readiness is because the primary energy supply has been met for up to 30 days of operation (HOP).During his visit to PLTU Suralaya, Sunday (25/12/2022), the Minister of Energy Resources and Minerals (ESDM), Arifin Tasrif, represented by the Secretary General of the Ministry of Energy and Mineral Resources, Rida Mulyana, ensured that the energy supply for the community in this Nataru moment was guaranteed.Moreover, according to Rida, PLTU Suralaya in particular is one of the backbones of the Java Madura and Bali (Jamali) electricity system. The reliability of primary energy supply for plant operations is one of the keys to the safety of electricity availability today."Its significant role is for the Jamali system so we ensure that the supply chain starts from primary energy to the readiness of its operators to the provision of electricity to the community, we can ensure that it is achieved," said Rida in a press statement, Monday (26/12/2022).Also present at the visit were PLT Director General of Electricity of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, Director of Generation of PLN, Adi Lumakso and President Director of PLN Indonesia Power, Edwin Nugraha Putra.On a different occasion, President Director of PT PLN (Persero) Darmawan Prasodjo said he was optimistic that the plant with a total capacity of 3,400 megawatts (MW) could operate to meet the electricity needs of the Jamali system during Nataru 2023. With this capacity, the Suralaya power plant supplies around 12% of the electricity needs in the Jamali system, so this power plant has a vital role for Jamali's electricity."If Nataru last year the condition of coal supply in Suralaya was a bit critical, this year is very good, and it has become the best HOP in history. This achievement is the fruit of collaboration between the Government, PLN and all stakeholders," said Darmawan.In Nataru 2022, the condition of coal supply at the Suralaya power plant was in a crisis point with a HOP of less than 7 days. Meanwhile, in Nataru 2023, coal supply reaches 30 HOP.According to Darmawan, this achievement is the result of PLN's efforts together with the Government and stakeholders in the domestic coal industry, always synergizing and coordinating to make efforts to ensure the availability of primary energy is met.In terms of supervision, since the beginning of 2022, PLN has made a paradigm shift in monitoring and controlling coal supply. Originally, supervision only focused on the estimated time of arrival (ETA) now it has become focused on the loading point.Supervision steps are carried out not only through physical in the field but also by integrating the digital monitoring system between the PLN system and the system at the Directorate General of Minerals and Coal of the Ministry of Energy and Mineral Resources. This system provides information on loading targets and is integrated with the system at the Directorate General of Minerals and Coal of the Ministry of Energy and Mineral Resources which records the realization of loading from each supplier."With a system like this, if there is a potential supply failure due to the availability of coal and its transportation fleet, it will be detected earlier. Not only that, corrective action can be carried out as early as possible so that certainty of supply can be better maintained," concluded Darmawan.Image source: PT PLNSource: https://investor.id/business/317410/stok-batu-bara-aman-pln-pastikan-operasional-pltu-suralaya-selama-libur-nataru

Indonesia Confirms Bauxite Export Ban To Proceed As Scheduled
Indonesia Confirms Bauxite Export Ban To Proceed As Scheduled
27 Dec 2022, 09:00 AM 6050

Indonesian President Joko Widodo on Wednesday confirmed an export ban for bauxite starting in June next year as scheduled, to encourage domestic processing of a material used as the main ore source of aluminum.The resource-rich nation has surprised markets with its commodity exports policies, including brief but controversial bans earlier this year on shipments of palm oil and coal, of which Indonesia is the world’s biggest exporter.It is also among the world’s top suppliers of bauxite, with China its key buyer. The timing of Indonesia’s ban, however, is in line with its current mining law.The president said the bauxite ban aimed to replicate Indonesia’s success in developing its nickel processing capacity after halting exports of its raw form in January 2020, which enticed foreign investors, mostly from China, to build local smelters.The measure, which led to a dispute at the World Trade Organization (WTO), also helped boost the value of Indonesia’s exports.“The government will remain consistent in implementing downstreaming so the value add can be enjoyed domestically for the country’s development and people’s welfare,” said Widodo, who is popularly known as Jokowi, emphasizing the importance of jobs creation.China was the biggest importer of Indonesia’s bauxite until Jakarta introduced a mineral export ban in 2014, which it lifted in 2017.According to Wen Xianjun, a former head of the aluminum department at the China Nonferrous Metals Industry Association, Indonesia’s 2014 ban prompted China to boost its efforts to develop aluminum resources in Africa instead.“Compared with then, China’s imports of bauxite are more diversified now,” Wen said.China imported 17.8 million tonnes of Indonesian bauxite in 2021, and 17.98 million tonnes in the first 11 months this year, about 15.6% of its total imports, according to customs data.The three-month aluminum futures contract on the London Metal Exchange rose 0.6% at $2,386.50 a tonne by 0530 GMT, while the most-traded aluminum contract on the Shanghai Futures Exchange was up 0.2% to 18,595 yuan a tonne.The announcement by Indonesia is not expected to have significant impact on prices.“It won’t cause any major supply headwind as Indonesia now only accounts for a relatively small share of China’s supply, Guinea and Australia will immediately make up the lost volume (after the ban),” an aluminum trader at a large trading house in China said.Indonesia has four bauxite processing facilities with 4.3 million tonnes of alumina output capacity, while more are under construction with collective capacity of nearly 5 million tonnes, said chief economic minister Airlangga Hartarto.Indonesia’s bauxite reserves are enough for up to 100 years production, he said.The country’s mining law also states exports of other unprocessed minerals such as copper will also be stopped. Jokowi did not specify the timing of shipment bans on the other materials.He said there was a possibility that legal action could be pursued against Indonesia for banning bauxite exports, but it would not deter him. The WTO last month ruled in favour of the European Union in a dispute on nickel ore exports, which Indonesia is appealing.Image source: Russian Presidential Executive Office, Wikimedia CommonsSource: https://www.mining.com/web/indonesia-confirms-bauxite-export-ban-to-proceed-as-scheduled/

RMK Energy, Bukit Asam Sign Coal Transport Agreement
RMK Energy, Bukit Asam Sign Coal Transport Agreement
27 Dec 2022, 08:00 AM 6403

Mining and logistics company RMK Energy and coal miner Bukit Asam on Friday signed an agreement on the logistical support for the latter’s 2.5 million tons of coal starting in 2023.RMKE represented by subsidiary Royaltama Mulia Kencana will build a hauling road from Bukit Asam’s mining sites and provide railway transport, loading and unloading services, stockpile services, and loading and transshipment to the mother vessel, the company said in a statement.“The collaboration between RMKE and Bukit Asam is a fine-tuner to our synergy with [state-run railway company] KAI in implementing the seamless coal transportation in South Sumatra,” RMKE Chief Executive Officer Tony Saputra said. “RMKE’s logistical solution which has been integrated with the KAI railroad networks allows Bukit Asam to optimize [productivity] from its abundant resources, making this agreement mutually beneficial to all the three parties,” he added.Tony stressed that the company remains in full support of the government’s zero emissions targets and renewable energy programs but post-pandemic challenges and the current geopolitical situation have put many countries on the brink of an energy crisis that requires urgent solution for energy security and boosts demands for coal until the global economy recovers to the pre-pandemic levels.RMKE has targeted to transport 20 million tons of coal under collaboration with other mining firms and sell 5 million of its own coal annually.Prior to the agreement signing with RMKE, Bukit Asam reached a deal with KAI to transport 20 million tons of coal a year from Tanjung Enim to Keramasan in South Sumatra. The railroad is set to be operational in the fourth quarter of 2024.Another railroad heading to Perajen Port is being built with a capacity of 20 million tons, expected to be completed in 2026.It’s hard to define the core business of RMKE because nearly 80 percent of revenue is generated from coal sales but the company’s infrastructural backbone has been coal logistics.While the Indonesia Stock Exchange puts RMKE into the group of energy stocks, the company describes itself as "the largest coal logistic provider in South Sumatra".RMKE has earned a reputation as the only private mining company to build its own railway system to carry coal from mining sites in South Sumatra jungles to the nearest port when most other companies depend on the government for that service.The biggest problem in Indonesia’s coal mining is that “we can hardly bring them out”, RMKE Finance Director Vincent Saputra told the Jakarta Globe in a recent interview. That led to the idea of building its own railroads that may open opportunities for logistics businesses serving fellow miners in the province.RMK Energy Finance Director Vincent Saputra shows the location of the company s operations in South Sumatra during a visit to B-Universe newsroom in Jakarta on November 30, 2022. (Joanito De Saojoao)RMK Energy Finance Director Vincent Saputra shows the location of the company s operations in South Sumatra during a visit to B-Universe newsroom in Jakarta on November 30, 2022. (Joanito De Saojoao)In 2014, RMKE executives met with Ignasius Jonan, then the president director of state-run railway company Kereta Api Indonesia (KAI), to propose the construction of railroads in Muara Enim, South Sumatra.After securing KAI support, RMKE began to search steel rails and it's lucky for them that a discontinued Russian railway project in Kalimantan provided exactly what they needed, Vincent said.The new railroad, spanning around 10 kilometers, was completed in just two years and even Jonan was surprised. The railway is jointly operated by KAI which provides carriages and manpower and RMKE which loads and unloads coals from in-house and third-party's mining.Image source: RMKESource: https://jakartaglobe.id/business/rmk-energy-bukit-asam-sign-coal-transport-agreement

Indonesian miner is world’s biggest stock winner of 2022
Indonesian miner is world’s biggest stock winner of 2022
26 Dec 2022, 08:00 AM 5652

In a turbulent year marred by global monetary tightening, recession fears, and a war in Ukraine, a mining stock in Indonesia is proving to be the world’s best performer with a whopping 1,595% rally.Shares of PT Adaro Minerals Indonesia have moved sideways since sliding from a peak in April, but are still handsomely beating peers in the 2,803-member Bloomberg World Index — delivering more than double the returns of runner-up Turkish Airlines.Adaro has seen its share price skyrocket since a Jan. 3 debut in Jakarta, catapulting from 100 rupiah to 2,990 rupiah in just over three months before a downshift took hold. It closed at 1,695 rupiah on Wednesday, with a market cap of about $4.5 billion.While the stock’s fortune has been closely tied to global coal prices, analysts see more gains thanks to Adaro’s strategy to use its windfall profit to diversify into aluminum and battery making for electric vehicles.The company reported a 482% jump in net profit in the nine months through September as its average selling price more than doubled and coal sales volume jumped 41%. Forecasts from five analysts compiled by Bloomberg suggest another 42% upside in stock prices over the next 12 months.Adaro’s price-to-book ratio at about 9.4 is near its lowest since listing, according to Bloomberg-compiled data, though it’s about six times higher than domestic peers including PT Bukit Asam and PT Indo Tambangraya Megah. China’s Shanxi Coking Coal Energy Group Co. and Australia’s Whitehaven Coal Ltd. — both of which produce coking coal — have ratios at about 2.Image source: Adaro EnergySource: https://www.mining.com/web/indonesian-miner-is-worlds-biggest-stock-winner-of-2022/

MIND ID Encourages PT INALUM to Collaborate Managing Productive Land in North Sumatra
MIND ID Encourages PT INALUM to Collaborate Managing Productive Land in North Sumatra
23 Dec 2022, 09:00 AM 5002

Indonesian Mining Industry Holding – MIND ID together with MIND ID Members, namely PT INALUM (Persero) signed an MOU with the Indonesian Army Retired Association or PPAD as a form of collaboration in inalum's land utilization in North Sumatra. The signing took place at MIND ID's head office in South Jakarta on December 16, 2022.Director of Operations and Portfolio of MIND ID - PT INALUM (Persero) Danny Praditya said that this collaboration is one of the real steps in making productive lands owned by the MIND ID Group, in order to provide more sustainable benefits for the community and the environment."This land use is certainly synergized with INALUM's environmental sustainability program, as well as a momentum for improving the social economy, and strengthening the empowerment of retired Army personnel. This MOU is one of the means to increase INALUM's productivity in realizing the Vision to Become a Leading Global Company Based on Integrated and Environmentally Friendly Aluminum. As well as bringing broad benefits to all stakeholders," said Danny.The signing was held today, Friday, December 16, 2022, at the INALUM Jakarta Office, between the Director of Operations and Production of PT INALUM (Persero), Mr. Danny Praditya and the Secretary General of PPAD, Mr. Dr. (C) Komaruddin S, S.IP, M.Sc. Land utilization is located in North Sumatra Province, which includes the areas of Toba Regency, Asahan Regency, Simalungun Regency, and Batu Bara RegencyMIND ID continues to emphasize the implementation of operational excellence in all operational lines of the MIND ID Group, one of which encourages the optimization of the use of productive lands owned by the MIND ID Group.The Association of Retired Army Soldiers (PPAD) is a forum for retired Army officers who are tasked with fostering unity and unity, integrity of members as entrepreneurship, improving social solidarity and family welfare and together with the Army actively participating in filling independence through nation building in order to maintain the establishment of the Unitary State of the Republic of Indonesia.Image source: Dok: MIND IDSource: https://www.suara.com/bisnis/2022/12/16/205207/mind-id-dorong-pt-inalum-persero-lakukan-kolaborasi-untuk-kelola-lahan-produktif-di-sumatera-utara

United Tractors (UNTR) Collaborates with IPB to Reduce Carbon Emissions
United Tractors (UNTR) Collaborates with IPB to Reduce Carbon Emissions
23 Dec 2022, 08:00 AM 6063

At the end of 2022, PT United Tractors Tbk (UNTR), or UT signed a Memorandum of Understanding (MoU) with the Bogor Agricultural University (IPB) at the IPB Campus Forest Park, Bogor Regency, West Java, Thursday (12/15/2022). The signing of this MoU is related to cooperation in implementing biodiversity programs to reduce carbon emissions (carbon set-off).Head of Corporate Sustainability and Governance of United Tractors, Sara K. Loebis revealed, through this collaboration, UT and IPB are committed to implementing a biodiversity program to create a carbon sequestration mechanism to achieve UT's carbon emission reduction target by 2030.Reducing carbon emissions, part of the company's target in implementing sustainable business principles through the implementation of environmental, social, governance (ESG) aspects. In this program, ESG implementation is under UT's CSR pillar for the environment, namely UTREES (United Tractors for Nature and Environment Sustainability)."This collaboration is one of the milestones for UT to make a real contribution to the environment around the company's operational area. UT and IPB with their respective advantages are committed to exchanging knowledge and technology to jointly support the government's target of achieving net zero emissions by 2060," said Sara K. Loebis.The main program outlined in the MoU between UT and IPB is the conservation of 20 hectares of IPB campus forests, with reforestation of 15,000 trees. In addition, until 2026, UT targets this collaboration to be able to provide a sustainable environmental impact by preparing other programs.Starting from basic calculations for reducing carbon emissions, improving facilities in the IPB campus forest environment, conservation of flora and fauna including protected fauna breeding. Among them, Timor Deer which currently number 19 and Bali Starlings which number 6, to the development of edu-ecotourism areas.In addition, United Tractors also pays attention to the welfare and economic sustainability of the surrounding community by developing economic programs through the involvement of farmer groups in the care and management of fruit tree planting products carried out this year, so as to provide added value from the economic side for the community."I think this support from Dr UT is indispensable. There is a Folu Net Sink 2030 target that needs to be achieved by the government with the support of all parties including the private sector. Later, IPB will register UT with the National Registration System (SRN) so that UT can claim the amount of carbon emissions that have been successfully suppressed in this program," Dodik Ridho Nurrochmat.Dodik Ridho Nurrochmat added, in this collaboration, IPB will play a role in caring for trees to calculate the baseline and the amount of carbon emission reduction obtained. From the current baseline calculation, 15,000 trees from UT are targeted to reduce the carbon emission burden between 1,200 and 2,400 tons of carbon within 5 to 10 years with a land area of 20 hectares.As a form of compliance, this collaboration program also receives direct supervision from the Bogor Region 1 Natural Resources Conservation Agency (BKSDA). Head of BKSDA Bogor, Lana Sari said that the government needs more similar programs coming from the private sector to be able to help the government realize the net zero emission target.The collaboration between UT and IPB supported by the Karya Bakti United Tractors Foundation (YKBUT) is realized by planting trees in the forest area of the IPB campus. There are seven types of trees planted: Meranti, Honey Jackfruit, Pearl Guava, Matoa, Rambutan Binjai, Kemang, and Red Guava. These seven types of plants were chosen because they have the ability to high carbon sequestration.Through this collaboration, UT aims to make all of the company's social and environmental contribution efforts effectively beneficial and provide added value to stakeholders and society. Therefore, collaboration and integration of the world of education and the industrial world play an important role in responding to environmental and social challenges in the future.The signing of the MoU was attended by the Dean of the Faculty of Forestry and Environment IPB, Naresworo Nugroho; Head of the Department of Forest Resources Conservation and Ecotourism IPB, Nyoto Santoso; Leader of the IPB Campus Forest Park Farmer Group, Sutopo; and CSR & Communication Department Head of UT, Himawan Sutanto.On October 13, 2022, United Tractors turns 50 years old to become a domestic company in the fields of heavy equipment, mining, and world-class energy that continues to contribute to having a positive impact on the nation and the country both in terms of business and social and environment.The reforestation of 15,000 trees in the IPB Campus Forest Park fulfilled 50,000 trees as part of the UT 50th Anniversary series. This reforestation is a company initiative in preventing extreme climate change and creating a better environmental future for the Indonesian nation.Tree planting has been going on throughout the year throughout Indonesia, especially UT's operational areas in Sumatra, Kalimantan, Sulawesi, East Nusa Tenggara, and Papua."As part of the momentum series of UT's 50th Anniversary, we launched 10 United Tractors Sustainability Aspirations in 2030 as the company's roadmap in implementing sustainable business and ESG implementation. These aspirations can be accessed entirely by the public openly through the company's website," said Sara K. Loebis.On the environmental aspect, UT targets to reduce Greenhouse Gas (GHG) Emissions scope 1 and 2 by 30%, 22% renewable energy mix to support operational activities, more efficient and effective water management in each business unit category, and solid waste management up to 62%.On the social aspect, UT supports diversity, equity, and inclusivity within the company, achieves zero labor fatality and LTI level of 0.093, and reaches 750,000 beneficiaries through community development programs to create added value.In terms of governance, UT maintains business resilience by increasing non-coal revenues by up to 50%, supporting diversity and inclusivity at the executive, board of directors, board of commissioners, and strengthening corporate governance with international standards to maintain the principles of good corporate governance (GCG).Image source: dok. ist.Source: https://www.emitennews.com/news/united-tractors-untr-jalin-kerja-sama-dengan-ipb-turunkan-emisi-karbon/17

Bukit Asam (PTBA) Raises Coal Production to 40 Million Tons in 2023
Bukit Asam (PTBA) Raises Coal Production to 40 Million Tons in 2023
22 Dec 2022, 10:00 AM 6158

PT Bukit Asam Tbk (PTBA) is ready to increase coal production to 40 million tons in 2023. The increase in targets is in line with the collaboration carried out by the company with PT RMK Energy Tbk (RMKE) recently. In addition, the company will also increase production capacity with various developments in the future.President Director of PT Bukit Asam Tbk (PTBA) Arsal Ismail explained, this year the company determined that coal production was 35.5 million tons with the realization reaching 27.7 million tons. In this collaboration, PTBA will use RMKE's loading and unloading facilities and transport PTBA's coal using a railway line owned by PT Kereta Api Indonesia (KAI) through Megang station."In collaboration, RMKE and PTBA will handle coal of 2.5 million tons in 2023 and is projected to increase gradually," he explained to Investor Daily, last weekend.In addition to RMKE, the company is currently collaborating with KAI to develop coal transportation on the Tanjung Enim-Keramasan route with a capacity of 20 million tons per year. This route, is scheduled to operate in the fourth quarter of 2024. Previously, PTBA targeted an increase in coal transportation capacity in Tanjung Enim to double capacity by 2027."We are also developing a coal transportation route to Prajen Pier with a transportation capacity of 20 million tons per year and is scheduled to operate immediately in the third quarter of 2026," he said.For information, PTBA has coal reserves that have not been monetized as much as 3 billion tons with a production rate of 35 million tons per year.Meanwhile, VP of Downstream Development of Bukit Asam Setiadi Wicaksono said, in the context of the energy transition trend and its relation to the coal industry, the company observed four main factors.First, the cyclical factors of the global economy that will drive coal demand relatively come from developing countries in the long term. Second, the direction of net zero emissions (NZE) which will trigger the demand for coal commodities to fall.Meanwhile, the next factor is the energy revolution which makes the portion of NRE in the future more significant, which has a direct impact on the decline in coal. The last factor is about ESG.According to Setiadi, the ESG factor is now very important considering that it deals with funding where global creditors have avoided types of investments that are not environmentally friendly.Facing industry challenges and the company's target of monetizing coal reserves of 3 billion tons, PTBA also prepared a long-term plan consisting of four pillars. The first pillar relates to the coal business, while the other three pillars concern the company's efforts towards an energy transition.Setiadi explained, in the first pillar, PTBA will increase capacity in line with the large amount of coal reserves that have not been monetized at the company's sites. "So, if we look at 2060, it is already the out phase of NZE, while our reserves are still a lot. So, inevitably we have to increase production capacity," he explained.Image source: B Universe Photo/Mohammad DefrizalSource: https://investor.id/market-and-corporate/316717/tahun-depan-bukit-asam-ptba-naikkan-produksi-batu-bara-jadi-40-juta-ton

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