PT Kapuas Prima Coal Tbk ( ZINC ), a listed base metal producer in Indonesia, seizes a positive opportunity from the increase in commodity prices that has continued to occur since the last one year. ZINC sees the current commodity prices, as well as the increasing demand for iron ore commodities, as well as base metals, especially for lead and zinc concentrates from various countries, will also boost the company's performance at the end of this year. As a result, ZINC also targets revenues in 2022 to reach Rp 1.2 trillion
ZINC Director Evelyne Kioe said that by the end of 2021, his party had projected that the company's performance this year would increase. "Now the consequences of the conflict in Europe have caused a number of commodity prices to increase, including those we mine. This can indeed provide the potential for increases," he said, Monday (21/3).
Evelyne emphasized that despite this opportunity, ZINC will continue to focus on implementing Good Mining Practice in maintaining performance and pursuing the completion of the smelter construction. In addition, ZINC also continues to run sustainability programs for CSR.
One of ZINC's commodities which is targeted to increase sales contribution this year is iron ore. With the price of iron ore currently in the range of US$ 145-US$ 155 per tonne (Fe content of 62%). This year, ZINC targets to sell around 180,000 tons of iron ore, with a target revenue contribution from iron ore of US$ 18 million to US$ 20 million, an increase of about 45% compared to the contribution in the previous year.
As is known, ZINC has mineral reserves of iron ore reaching 23 million tons which have not been exploited. With rising prices and stable demand, the company will intensify iron ore mining on a large scale to target sales to the domestic market.
In addition to iron ore, this year ZINC will also intensify production and sales of lead (Pb) and zinc (Zn) concentrates. With ZINC's total exploration area reaching around 1,600 Ha of the company's total mining area of 5,569 Ha, ZINC will continue to increase production capacity with a target of reaching 550,000 tons to 642,000 tons of ore.
From ZINC's monitoring, the prices of lead (Pb) and silver currently tend to be stable compared to the previous year, while for zinc (Zn) the prices have experienced a significant increase. If the commodity price can stay in the range of US$ 3,500 per tonne, it can make an additional contribution to profit. However, if commodity prices continue to fluctuate, it can have an impact on production costs.
Image source: www.industri.kontan.co.id
Source Link: https://industri.kontan.co.id/news/kapuas-prima-coal-zinc-pacu-penjualan-di-tengah-reli-harga-komoditas
