Indika aims to produce 31 million tonnes of coal in 2011

Thursday, 16 Jun 2011

The Jakarta Post reported that PT Indika Energy Tbk, an integrated energy company, is targeting to increase its coal production up to 31 million tons this year from 29.1 million tonnes in 2010.

Mr Arsjad Rasjid Indika president director said by looking at the first quarter production of 7.6 million tonnes worth USD 62.5 per tonne, he was upbeat that the company could reach the target by year end.

Mr Arsjad said “In the first quarter we can reach around 24.6% of this year’s target, so we are very optimistic we can achieve the target. He said that 80% of the 31 million tonnes was already ordered under contracts while the remaining 20% would be sold on the spot.”

Mr Arsjad added that 70% of the total production would be exported to various countries such as India, China and Korea, while the remaining 30% would be sold in the domestic market.

The Indonesian Coal Mining Association said Indonesian coal miners expected to produce 340 million tons this year an increase of 23% from 275 million tons in 2009. 20% of that amount around 70 million tons will be allocated to fulfill domestic demand while the remaining 80% will be exported.

Mr Azis Armand Indika Energy director said the company had 651 million tonnes of proven coal reserves and 1.4 billion tonnes of potential coal reserves.

Mr Arsjad said “The proven reserves have been recognized in four or five areas and we will acquire more areas to increase the proven reserves, adding Indika planned to increase its production capacity up to 50 million tonnes in 2012.”

Indika Energy puts its strategic investments in the areas of energy resources, energy services, energy infrastructure, contract mining, coal transport and logistics and power generation.

(sourced from The Jakarta Post)