By Romel S. Gurky
IDX-listed coal mining firm PT TBS Energi Utama Tbk (IDX: TOBA) is planning to ramp up its coal production this year to reach up to 3.5 million tons, compared to the 3.1 million tons it produced last year.
“The company achieved a 2023 production target of 3.1 million tons with an actual stripping ratio of 15.1x. For 2024, the company is targeting coal production of 3.0 – 3.5 million tons with a stripping ratio of 12.5x – 13.0x,” TBS said in a recent statement.
The company said it plans to continue building well-diversified market destinations and expanding its customer base for coal in 2024 while maintaining product quality and timely delivery, as well as optimizing the current favorable coal price into the company’s average selling price (ASP).
The company, through its three coal mining subsidiaries, namely PT Adimitra Baratama Nusantara (ABN), PT Trisensa Mineral Utama (TMU), and PT Indomining (IM), operates coal mine concessions located in Sangasanga District, Kutai Kartanegara Regency, East Kalimantan Province.
TBS said that ABN stood out as the leading contributor to the 2023 coal output, accounting for 61% of the total production volume, followed by TMU and IM at 26% and 13%, respectively.
Read also: TBS plans lower coal production next year
The company said its ASP witnessed a decline of 26.5% from US$105.7 per ton in 2022 to US$77.7 per ton in 2023. Nevertheless, this decline was still better than the correction of 52% in the NEWC Index, which plummeted from US$360.2 per ton in 2022 to US$172.8 per ton in 2023. Similarly, ICI 3 also witnessed a considerable decrease of 29% from US$119.0 per ton in 2022 to US$84.8 per ton in 2023.
In 2023, the company's coal sales were primarily concentrated in Indonesia, Taiwan, Philippines, and China, accounting for 80% of total sales volume. The composition of traders and end-users as a percentage of the total customer base shifted to 58% and 42%, respectively, compared to 84% and 16% at the end of 2022. Major international traders and end-users, including regional power plant companies, constituted the company's primary customers.
“TBS is capitalizing on opportunities by significantly increasing its coal trading business sales volume, expanding it by 4.5 times from 2020 to 2023,” the statement said.
Editing by Reiner Simanjuntak
