PT Harum Energy Tbk (HRUM) believes that energy consumption from coal will still be high this year. Taking advantage of this momentum, HRUM's management will hoist coal production and maximize its production capacity and infrastructure.This year, Harum Energy aims to grow coal production by 35% compared to 2021, which is around 3.5 million tons.
Harum Energy's President Director, Ray Antonio Gunara, said that his party is working to achieve the target of increasing production while still trying to control coal mining operations and production efficiency.
"Harum Energy will use the existing fleet of heavy equipment and barges because the company still has adequate production capacity and infrastructure," said Ray, Sunday (17/4).
Ray sees the demand for coal commodities in the global market is still showing a strengthening trend since the beginning of this year. The current tight supply of coal is in the midst of high consumption levels. According to him, currently the world's coal industry is influenced by two factors. First , the impact of the Russo-Ukrainian conflict, namely sanctions against Russia that have the potential to disrupt coal supply in the European market so that coal prices tend to remain high in the near term.
In addition, secondly , the effect of the lockdown situation due to the recent increase in COVID-19 infections in China is expected not to have too significant an effect on coal exports from Indonesia, because energy consumption in this market is still relatively high. To support the business agenda this year, HRUM has prepared a higher capital expenditure compared to last year. In 2022 the capex prepared by HRUM is US$ 25 million, while last year the capex was only US$ 16.1 million.
Ray added, HRUM has budgeted around US$ 25 million for the allocation of capital expenditure in 2022 which includes the addition of coal mining properties, purchase of vehicles, purchase of heavy equipment and maintenance of tugboats and barges, and construction of infrastructure and production facilities in nickel mining areas.
He explained that part of the capex budget had been realized in accordance with the allocation set by HRUM management earlier this year. Namely, the construction of infrastructure and production facilities in the nickel mining area, the addition of coal mining properties, the purchase of vehicles, the purchase of heavy equipment and the maintenance of tugboats and barges.