By Calvin Purba
IDX-listed coal mining firm PT Petrindo Jaya Kreasi Tbk (IDX: CUAN) has announced a coking coal production target of 3 million tons per annum.
Kartika Hendrawan, CFO of Petrindo, informed Petromindo.com on Tuesday (Oct 8) that the company holds a concession with reserves of 100 million metric tons of coking coal. With a production target of 3 million tons per year, this equates to an estimated mine life of around 33 years. The concession is located in Central Kalimantan.
"Petrindo has a sizable concession with 100 million metric tons in reserves. Our production target of 3 million tons annually suggests a mine life of approximately 33 years," Hendrawan stated.
To achieve this production goal, Petrindo has appointed its subsidiary, PT Petrosea, as the mining contractor responsible for constructing the road connecting the mine to the port. "Petrosea will build the road from the mine to the port," Hendrawan added.
Read also: Petrindo begins producing coking coal
Hendrawan also noted that Petrindo anticipates a mine life of about 15-20 years for thermal coal and 30-40 years for coking coal.
Petrindo is affiliated with PT Barito Pacific Tbk (IDX: BRPT). As the parent company, Petrindo operates coal mining businesses supported by various subsidiaries across Kalimantan. Since 2013, it has been producing high-quality thermal coal through its subsidiary, PT Tamtama Perkasa, and it began producing metallurgical coal last month via its subsidiaries, PT Multi Tambangjaya Utama (MUTU) and PT Daya Bumindo Karunia (DBK).
In May, Petrindo finalized the acquisition of 100 percent of the shares in PT Borneo Bangun Banua (B3) and PT Borneo Bangun Banua Bestari (B4) for an undisclosed amount. B3 holds a Coal Mining Business License (IUP) with a working area in Central Kalimantan, while B4 owns 99.9% of B3's shares.
Looking ahead, Kartika mentioned that Petrindo plans to diversify into mineral commodities as part of its expansion strategy. "We are exploring several opportunities, not just in coal or coking coal, but also in various other minerals, both domestically and internationally," she said, although she did not provide specific details.
Hendrawan added that the company is considering multiple funding options to support its expansion plans. "With our acquisition initiatives, funding requirements naturally arise. We are evaluating various potential funding scenarios, including equity, rights issues, and bonds. However, as part of Barito, we are always held to KPIs for growth," he concluded.
Editing by Reiner Simanjuntak
