Coal Miners to Ride on the Wave of Coal Price Momentum

By Editorial Team 19/09/2019
Summary

PT Bukit Asam Tbk (PTBA) will increase the production of coals with the high-calorific value of 6,000 kilocalories in the second half of 2019. The decision is part of its strategy to increase profit. PTBA Corporate Secretary Suherman explained that the company could optimize the profit margin by producing coals with high-calorific value since the price of ones with a calorific value of 4,000 kilocalories tended to be volatile.

Bukit Asam is not only maximizing the production of coals with high-calorific value but also improving the efficiency to increase its profit, slumped in the first half of 2019. During that period, PTBA’s net profit dropped from Rp 2.58 trillion to Rp 2 trillion, or down 22.48 percent year-on-year. The shrink of net profit was the result of the increase in mining cost following the rise in production and stripping ratio.

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