Bumi Resources Aims for 90 MnT Coal Output in 2019

PT Bumi Resources, Indonesia's largest thermal coal producer, expects to produce more than 90 MnT of coal this year, slightly higher than its 2018 estimated growth output of 85 MnT, said Mr Dileep Srivastava, director and corporate secretary of the company.

The coal production will be above 90 MnT production in CY 19 against 85 MnT estimated for CY 18 .. but with a richer quality mix,” Mr Srivastava told CoalMint in an exclusive interview recently.

Bumi Resources has yet to announce its actual 2018 coal output.

The company has two coal mining units -- PT Kaltim Prima Coal and PT Arutmin Indonesia, both of which located in the resource-rich Borneo Island.

“Arutmin is expected to increase its high calorific value coal production for exports from 4 MnT this year to 8-9 MnT in CY 19 ..so prospect of higher ASP,” he added.

Bumi Resources' Arutmin unit would boost its production this year to benefit from high global price of high calorific value, that compared with the average of Indonesian coal miners that produce coal with low calorific value.

As a result, it will put Bumi Resources in a better footing and yield ‘better financial results,” he said without providing figures.

Mr. Srivastava also added that the company would sell 70-75% of its coal to India and China with the remainder in the domestic market. “Mainly to China, India and rest of Asia with a little to Europe,” he asserted while mentioning the preferred destination for coal exports.

Bumi Resources' modest growth followed its rivals like Adaro Energy, Bukit Asam. Adaro forecast its coal output at 65 MnT in CY19 from an estimated 55 MnT in CY18 while state coal miner Bukit Asam had forecast coal output at 27.3 MnT this year from 25.5 million tonnes in CY18, reports showed.

Bumi Resources is the crown jewel of Bakrie Group, controlled by Indonesia's businessman Aburizal Bakrie.

source: SteelMint

coal Bumi Resources Arutmin unit