PT Singaraja Putra Tbk (SINI) has the potential to reap huge revenues from the coal mine that will be operated by one of its subsidiaries, PT Pasir Bara Prima (PBP). PBP has partnered with PT Petrosea Tbk (PTRO) as the mining service contractor to develop the coal mine.
The cooperation between PBP and PTRO was agreed upon through the signing of the Mining Services Agreement Term Sheet between the two parties on March 27, 2024. The scope of work includes overburden excavation and coal stripping.
Estimated overburden production reaches 240 million Bank Cubic Meters (BCM) and coal production of 26 million tons for nine years, from 2024 to December 31, 2032. In the disclosure of information released on the Indonesia Stock Exchange (IDX) on April 4, 2024, SINI's Corporate Secretary conveyed the estimated revenue that could potentially be achieved from the operation of the coal mine.
The PBP operation is planned to produce coal with GAR 5,000 quality and has the potential to generate total revenue for nine years of USD 1.95 billion. Assuming the current market price of USD 75 per ton and the rupiah exchange rate against the US dollar of IDR 15,500, the value is equivalent to IDR 30 trillion.
The forecast is also achieved with a projected production volume of 26 million tons for nine years (2024 - 2032). "Therefore, the company is very optimistic that it will get a large positive contribution to support the continuity of the company's business and the interests of all stakeholders," said SINI's disclosure.
In coal mining activities, SINI and its subsidiaries claim to fulfill all important aspects such as technical, safety, environmental, social, and other aspects. "The existence of this partnership is an important milestone achievement. In carrying out coal mining operations, the company and its subsidiaries focus on selecting contractors who are professional and credible in their fields," said the Corporate Secretary of SINI.
Previously, on Wednesday (3/4), Petrosea's management announced the signing of a term sheet for a mining services agreement with PT Pasir Bara Prima, a subsidiary of PT Singaraja Putra Tbk (SINI). This partnership is related to overburden stripping and coal production in the mine area located in Kapuas Tengah, Kapuas, Central Kalimantan with a value of approximately USD 511.45 million.
The estimated overburden is 240 million BCM and coal production is 26.4 million tons for nine years until 2032. To illustrate, if converted at the current exchange rate of IDR 15,850 per US dollar, the contract value obtained by PTRO is equivalent to IDR 8.1 trillion.
Meanwhile, the movement of SINI and PTRO shares increased before the stock exchange was on a long Eid holiday. On Friday (5/4), SINI's price soared 9.73% to IDR 620 per share. Meanwhile, PTRO rose 2.05% to IDR 4,480 per share.
Image source: doc. Petrosea
Source: https://investasi.kontan.co.id/news/potensi-raih-rp-30-triliun-singaraja-sini-gandeng-ptro-garap-tambang-batubara
