Until the end of next year, BUMI is aiming for a coal production target of 83 million tons - 89 million tons for the 2022 financial year. This figure is greater than the realization of BUMI's coal production which amounted to 78.8 million tons in 2021.

Meanwhile, BUMI's coal sales volume reached 79 million tons in 2021, while BUMI's consolidated revenue reached US$ 5.4 billion with a net profit of US$ 489 million. With a higher production target in 2022, BUMI hopes to pocket higher revenues this year compared to 2021. Dileep is optimistic that coal prices will be at a high level in 2022 and in the following years.

The driving catalyst, according to Dileep, was the widening gap between coal supply and increasing demand due to a number of factors, ranging from the global energy crisis, unaffordable gas prices, the inability of renewable energy to meet the soaring energy needs after the Covid-19 pandemic, to replace fossil fuels such as coal, and much more.

“Moreover, the reluctance of institutions and banks to finance the expansion of coal production capacity expansion in line with the spirit of green energy and renewable energy is also increasingly pushing the gap between supply and demand for coal to widen. The possibility of sanctions against Russian coal also further reduces the supply of coal," added Dileep.

Dileep ensured that BUMI would prioritize fulfilling PLN's coal needs in coal sales. After fulfilling the supply obligations to PLN, BUMI will focus on fulfilling export orders from existing customers.

Source: https://industri.kontan.co.id/news/bumi-resources-bumi-pacu-produksi-batubara-pada-kuartal-ii-2022