PT MNC Energy Investments (IATA) through its newly acquired company, PT Arthaco Prima Energy (APE) has discovered new coal reserves of up to 20.58 million metric tons (MT). Based on a report by the Indonesian Mineral Reserves Committee (KCMI), the new coal reserves have a GAR of 3,250 kg/kcal in Phase 1 drilling on an area of 380 hectares of the total current reserve area of 2,059 hectares. Meanwhile, Phase 1 coal resources reached 138.85 million MT.
Using the average HBA coal price from 2000 to April 2022, APE mining activities will generate a Net Present Value (NPV) of USD 56.6 million, with an Internal Rate of Return (IRR) of 56.5%, Break Even Point (BEP) of 5.2 million MT and Payback Period of 1.87 years. "Obviously if coal prices persist as they are now, the above NPV will more than double," said Head of Investor Relations IATA, Natassha Yunita, Monday (9/5).
Natassha said that the discovery of reserves and resources will continue to grow because the Phase 1 drilling carried out is only less than 20% of the APE IUP area that can be mined. Phase 2 and Phase 3 drilling are scheduled to be completed this quarter.
“APE already has a Production Operation IUP with an area of 15,000 hectares in Musi Banyuasin, South Sumatra. The APE mine site is only 12.5 km from the river and about 108 km to the transshipment area at Tanjung Buyut port. APE is planned to start production in the fourth quarter of 2022," he said.
With the addition of this KCMI report, proven coal reserves from 9 IUPs owned by IATA increased to 158.68 million from the previous 138.1 million MT. This figure does not take into account the additional reserves from the APE IUP where more than 80% of the land has not been drilled.
As for the IUP of PT Indonesia Batu Prima Energi (IBPE), PT Bhumi Sriwijaya Perdana Coal – South (BSPC-S), PT Putra Mandiri Coal (PUMCO), PT Primaraya Energi (PE), PT Titan Prawira Sriwijaya (TPS), PT Sriwijaya Energi Persada (SEP), as well as PT Energi Inti Bara Pratama (EIBP), have not drilled at all.
“Drilling activities will continue and reserves will continue to grow if exploration results show coal findings. Management estimates that coal reserves for all IUPs will reach a minimum of 600 million MT," he said. (RW)