March 25, 2024 - Indonesian coal producer Kaltim Prima Coal (KPC), a subsidiary of the country's largest coal mining firm Bumi Resources, is aiming to maintain its coal output at 53.5mn t/yr during 2024-26.

 

This production target has been set under the company's RKAB work plan and budget that has been approved by the country's ministry of energy and mineral resources (ESDM), and is marginally lower than its 2023 output of 54.2mn t.

 

The flat production target for the next three years will allow the company to focus on developing new mining sites at its concessions to optimise life of mines, KPC said. The company is looking to develop two mining pits, at its Pinang and Bengalong blocks in Kalimantan. These new pits are expected to come on line by the second half of this year, with combined projected output of 1mn t/yr. Output from these new pits will not have any material impact on total production for 2024 because of the relatively small volume, but output could scale up in the future once production is optimised, KPC said.

 

The new pits are aimed at replacing some mining areas where coal production might not be economically feasible because of the lower price of coal, KPC said. But the company's total coal reserves remain at a healthy level of around 600mn t, it said.

 

Export sales will account for 74-75pc of the company's total sales volume in 2024-26. China and India will remain the largest export markets for the company, with the two countries expected to account for over 60pc of KPC's total export sales. The company is also looking to expand its presence into Vietnam and Bangladesh. Bangladesh received a total of 270,400t of KPC coal shipments last year.

 

The company will sell 25pc of its coal to the domestic market to fulfill its domestic market obligation quota. Around 90pc of domestic sales will be to state-owned utility PLN's coal-fired power plants, while the remainder will be sold to cement and fertilizer manufacturing companies, KPC said.