PT Sumber Global Energy Tbk. (SGER) has entered into a Coal Offtake Agreement with PT Merge Mining Industri (MMI) to ensure a stable coal supply for its regular customers.
Under the agreement, MMI, as the seller, intends to supply up to 2 million metric tons (MT) of coal to SGER, the buyer. The agreement will be overseen by PT Merge Energy Sources Development, which holds 172,045 shares in MMI.
SGER's Corporate Secretary, Michael Harold, stated that the coal purchased by SGER from MMI has a Gross Calorific Value (GCV) specification of 6,300 kcal per kilogram (kg), with an ash content of 14 percent and a total sulfur content of 0.5 percent.
This coal is produced from MMI's own mining area and is not mixed with or sourced from third-party producers.
The coal will be delivered by the seller to SGER starting from November 2024 and no later than October 2028," Michael said in an official statement on Wednesday (November 13, 2024).
Michael stated that the purpose of this offtake agreement is to ensure a stable coal supply for the company's customers. As a major coal trading company, SGER is committed to providing the highest quality coal at competitive prices.
He also expressed optimism about the future prospects of coal, noting that it remains a key energy source, especially in developing countries like Indonesia and other Southeast Asian nations.
"Despite global pressure to transition to cleaner energy, coal demand remains stable, particularly from countries like India, China, and several other Asian nations that continue to increase their energy consumption to support economic growth," Michael explained.
In a separate disclosure to the Indonesia Stock Exchange (BEI), it was mentioned that the contract volume between the company and MMI has the potential to generate revenue of up to IDR 3 trillion.
The contract volume is 2 million metric tons, with a revenue potential of IDR 3 trillion," said Michael.
As of Q3 2024, SGER reported revenues of IDR 10.88 trillion, a 14.30% increase compared to IDR 9.52 trillion in Q3 2023.
Michael explained that the increase in SGER’s revenue for the first nine months of 2024 was driven by higher coal and nickel sales.
Specifically, SGER's coal sales amounted to IDR 10.65 trillion, up 12.84% year-on-year. Meanwhile, nickel sales surged 211.96%, reaching IDR 228.52 billion, compared to just IDR 73.25 billion in the same period last year.
