PT Golden Energy Mines Tbk (GEMS) targets coal production throughout 2023 to grow 5% on an annual basis compared to production in 2022. President Director of GEMS, Bonifasius explained, so far the final data on production in 2022 is still in the consolidation stage.
"But the estimated production is around 39 million tons from the target of 40 million," he explained to Kontan.co.id, Sunday (8/1).
This year, Boniface sees that coal growth is still good with the easing of Covid-19 monitoring in China. He sees that this should be able to spur industrial growth for the better and have an impact on the energy needs of coal.
"Production growth this year is estimated to be above 5% compared to 2022," he said.
According to Kontan.co.id calculations, when compared to the provisional data stated by Boniface, the additional production volume targeted by GEMS in 2023 is 1.95 million tons of coal so that production will be 40.95 million tons.
Launching the results of the November 2022 public expose, GEMS Management explained, according to the Work Plan and Cost Budget (RKAB) currently being submitted by PT Borneo Indobara (BIB), a subsidiary of GEMS as the largest contributor to production volume with a total production proposed of 36 million tons, and BIB has plans to submit a revision of the RKAB in the middle of 2023 to increase its production volume.
The focus of GEMS's business agenda throughout the year is to spur business growth organically and maintain growth in accordance with Environmental, Social and Governance (ESG) rules.
Launching Kontan.co.id previous note, Boniface is optimistic that coal demand from the Asian market will still be positive despite the shadow of a global economic recession.
To support the planned increase in production, GEMS budgeted capital expenditure (capex) of around US$ 25 million for infrastructure and production support facilities. According to the plan, the budget will rely on the company's internal cash.
Image source: PT Golden Energy Mines Tbk
