Bukit Asam To Improve Coal Quality

Jakarta, July 25 (ANTARA) - Publicly traded coal producer PT Bukit Asam Tbk (PTBA) said it will improve the average quality of its coal . Currently high quality coal with a calorific value of more than 6,000 kcal per kilogram makes up only 25 percent of its total coal production, the state company said. The company hopes to increase the percentage to 35 percent in the second half of the year by acquiring only mines with high quality coal, its president Milawarma said here on Tuesday. The quality of the company`s coal already improved with the portion of production of high quality coal having increased to 25 percent from 15 percent last year. The company`s coal consists of a number of types by quality from the lowest quality of 5,000 kcal/kg to 7,000 kcal per kg. One with a calorific value of more than 6,000 kcal per kg is classified as high quality coal, Milawarma said. Improvement of the quality is expected to improve the financial peroformance of the company in the second half of this year, he said. This year, the company sets income target at Rp15 trillion with net profit of Rp3.4 trillion. In the first half of the year, the company chalked up a 13 percent increase in income to Rp5.79 trillion year-on-year largely on larger sales and higher price. The company recorded sales at 7.36 million tons in the first six months of the year or an increase of 13 percent from the same period last year. Its coal price averaged Rp785,043 per ton , up from Rp781,228 per ton. However, its net profit in the January-June period this year fell slightly 3 percent to Rp1.56 trillion on growing stock unsold. The company still has difficulty in disposing of its coal production over transport problem. The company relies mainly on the state railway company for the transport of its coal from its coal mines in Tanjung Enim , South Sumatra to seaports. The company sells most of its coal to the country`s largest coal coal fired power plant in Suralaya, Banten. The company hopes to be able to increase sales significantly when new rail track planned to extend between Tanjung Enim and the Tarakan seaport in Lampung has been completed.