By Dominikus
IDX-listed coal producer PT Baramulti Suksessarana Tbk (IDX: BSSR) disclosed that the company plans to reduce its coal production this year by around 2.5 million tons compared to last year’s target, with the reduction coming primarily from its mining unit, PT Antang Gunung Meratus (AGM). Referring to the company’s 2023 Annual Report, BSSR initially projected its 2024 coal production to rise by approximately 10 percent from the 2023 realization of 21.57 million tons, or around 23.7 million tons. However, as of early April, the company has yet to officially release its full-year 2024 production figures.
“This year BSSR’s total output will drop, especially from the AGM mine. The coal market is very sluggish right now, with falling prices and government regulations that are unfavorable to producers. Production from the Baramulti mine will remain stable, but AGM is cutting back by around 2.5 million tons,” a source familiar with the matter told Petromindo.com on Thursday (03 April), requesting anonymity.
Read also: BSSR revises up coal production target
In 2023, BSSR produced 21.565 million tons of coal, with PT Baramulti Suksessarana contributing 5.546 million tons and AGM accounting for 16.019 million tons. This represented a sharp increase from the company’s 2022 output of 15.526 million tons (Baramulti 4.856 million tons and AGM 10.669 million tons).
The company’s coal sales in 2024 were largely directed to China, which absorbed 54.47 percent of total sales. Other key markets included Indonesia (21.89 percent), India (14.03 percent), South Korea (4.63 percent), and a mix of countries such as the Philippines, Thailand, Cambodia, Croatia, and Malaysia, which collectively made up the remaining 4.98 percent.
BSSR continues to operate its coal mines through its two main subsidiaries: PT Baramulti Suksessarana in Kutai Kartanegara Regency, East Kalimantan, and PT Antang Gunung Meratus in South Kalimantan. The company also maintains multiple mining service agreements with several contractors, each with varying contract terms. Its infrastructure provider PT Indo Perkasa has a contract valid until March 2028, while other mining service agreements with contractors such as PT Kalimantan Prima Persada and PT Berkat Anugerah Sejahtera are set to expire in December and July 2027, respectively. Additional contracts with PT Bina Sarana Sukses and PT Hasnur Riung Sinergi extend through 2027 and 2026. Several other contracts for the Loajanan mining site—including those with CV Multindo Prima Teknik and PT Multindo Ada Jaya Usaha—are scheduled to end in December 2024, though renewal discussions are currently underway.
Editing by Reiner Simanjuntak
