Mining Directory

PT Indo Tambangraya Megah Tbk (ITMG) targets coal production to reach 18.8 million tons by 2022. ITMG Director of Corporate Communications & Investor Relations Yulius Gozali said coal production volume for this year is targeted in the range of 17.5 to 18.8 tons. million tons. Meanwhile, this target increased from the realization in 2021 which amounted to 18.2 million tons.

Yulius revealed, a number of strategies are prepared by the company in order to pursue production targets for this year. These targets include production optimization to cost management. "We will maximize production by continuously improving cost management, increasing infrastructure capacity, monitoring and evaluating mining contractors, and managing mine operations effectively and efficiently," said Yulius to Kontan, Monday (25/7).

Yulius added, in an effort to achieve this production target, one of the influencing factors is rainfall. According to him, currently the rainfall in each mine is quite varied. "Some interesting weather is quite conducive, and in other locations there is rainfall that is higher than expected," Yulius said. Apart from rainfall, a number of other challenges in the production process include fuel prices and contractor performance that affect production.

Likewise, Yulius ensured that he would strive to continue to meet the production targets that had been set. On the other hand, the positive trend in coal prices in the first semester of 2022 is recognized as having a positive effect on ITMG's financial performance. He ensured that the company would continue to take advantage of this price momentum. Kontan noted, until the first quarter of 2022, ITMG recorded net sales of US$ 640 million, up 125% from the first quarter of 2021 worth US$ 284 million.

In the first three months of 2022, ITMG obtained an average selling price or average selling price (ASP) of coal of US$ 150 per ton. This ASP is 121% higher than the same period last year. Meanwhile, ITMG's net profit increased 407%, from US$ 42 million in the first quarter of 2021 to US$ 213 million in the same period this year. Throughout the first quarter of 2022, ITMG has produced 3.8 million tons of coal. Meanwhile, the realization of sales reached 4.3 million tons. Yulius continued, the capital expenditure allocation for this year reached US$ 68.8 million.

The capital expenditure allocation is planned to be used for infrastructure development at the Bharinto Ekatama (BEK) mine, replacement of heavy equipment for the company's mining business (TRUST) to investment in renewable businesses.

Source: https://industri.kontan.co.id/news/incar-produksi-188-juta-ton-batubara-begini-strategi-indo-tambangraya-itmg