Bumi Resources’ production and sales reached around 61 million tons as of September

Reporter: Ika Puspitasari | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. PT Bumi Resources Tbk (EARTH) pursuing the target of coal production and sales volume of 83 million tons-87 million tons until the end of 2021. This figure is an increase compared to last year’s realization of 81 million tons of coal.

Bumi Resources Director and Corporate Secretary Dileep Srivastava said sales figures for the January-September period will only be released at the end of October 2021. However, he predicts BUMI has realized production and sales of 60 million tons-61 million tons of coal until September 2021.

Dileep added that the average selling price of its coal products is in the range of US$ 60 per ton or 40 percent higher than last year’s selling price.

Dileep explained, the majority of BUMI’s coal sales implement long-term contracts. “Sometimes we do spot sales, but the portion is very low,” said Dileep to Kontan.co.id, Thursday (7/10).

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Just so you know, this Bakrie Group mining company has a sales portion of up to 70 percent to the export market. The remaining 30% is marketed domestically, including for commercial purposes domestic market obligation (DMO) whose portion is 25%.

Now, in determining the tariff for coal sales to the export market, BUMI refers to the world coal price and sales to the domestic market according to the reference coal price (HBA). Meanwhile, the DMO sales tariff is in accordance with the initial agreement.

According to Kontan.co.id, through its subsidiary PT Kaltim Prima Coal (KPC), BUMI produces coal with a calorific value of 4,700 GAR to 6,700 GAR, while for PT Arutmin Indonesia 4,200 GAR to 6,300 GAR.

In order to maximize performance, Dileep said BUMI will also increase the production of high quality coal from Arutmin. In addition, BUMI continues to implement efficiency and accelerate debt payments to reduce interest costs.

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