Jakarta, October 30, 2023 – PT Bukit Asam Tbk (PTBA), a member of the MIND ID Mining BUMN Holding, continues to maintain excellent performance in the third quarter of 2023.The Company was able to record a net profit of Rp3.8 trillion for the first nine months of 2023. PTBA posted Rp27.7 trillion in revenue and had Rp.36.0 trillion in total assets as of September 30, 2023.
This net profit achievement was supported by the Company's operational performance increase during January - September 2023. PTBA's total coal production until the third quarter of 2023 reached 31.9 million tons, increased 15.2 percent compared to the same period in 2022 of 27.7 million tons.
This increase in production was in line with an increase in coal sales volume of 14.9 percent to 27.0 million tons. Until the third quarter of 2023, the company recorded export sales of 11.2 million tons, an increase of 24.4 percent compared to the same period the previous year. Meanwhile, the realization of Domestic Market Obligations (DMO) was recorded at 51 percent.
This year has presented the Company with a number of challenges, including corrections in coal prices and market fluctuations. The average ICI-3 coal price was corrected by around 33 percent from USD 128.5 per ton in January-September 2022 to USD 86.3 per ton in January-September 2023.
On the other hand, the Cost of Goods Sold experienced an increase, including components of royalty costs, rail transportation and mining services.
Therefore, PTBA continues to strive to maximize both domestic market potential and export opportunities to sustain good performance. The company also consistently prioritizes cost leadership in all business lines, so that sustainable efficiency can be implemented optimally.
Aside from that, the Company expects that the formation of a Management Agency Partner (MIP) can be realized soon and will have a positive impact on PTBA's financial performance.
Development Project Progress
Coal Downstreaming
In line with its vision of becoming a world-class energy company that cares about the environment, PTBA is committed to supporting government policies that encourage coal downstreaming and ensure national energy security. The company has prepared land for the development of downstream industries in collaboration with potential partners. Furthermore, PTBA has allocated special coal reserves for downstream projects to ensure that the downstream industry's coal needs are met.
PLTU (Coal Fired Power Plant)
PTBA through PT Huadian Bukit Asam Power (HBAP) as an Independent Power Producer (IPP) is building the Sumsel-8 Mine Mouth Coal Fired Power Plant (PLTU) with a capacity of 2x660 MW, or also known as the Tanjung Lalang PLTU. HBAP is a consortium between PTBA and China Huadian HongKong Company Ltd.
The construction of the plant, which will require around 5.4 million tons of coal per year, has reached 99 percent construction progress. This power plant is expected to start commercial operations in the fourth quarter of 2023.
Renewable Energy Development
In line with PTBA's vision to become a world-class energy company that cares about the environment, the company's business expansion into the new and renewable energy sector continues to roll out. The Company continues to transform through business diversification to become an integrated and sustainable world-class energy company, including by entering the new renewable energy (EBT) business.
PTBA's support in efforts to reduce global carbon emissions is manifested through synergy with PT Jasa Marga (Persero) Tbk in the development of Solar Power Plant with a capacity of 400 Kilowatt-peak (kWp) on the Jasa Marga Group toll road. The construction of the Bali Mandara Toll Road Solar Power Plant, which was inaugurated on September 21 2022, is proceeding well, resulting in positive benefits in terms of energy efficiency and operational costs, and of course supports Indonesia's G20 Presidency in November 2022, one of which focuses on the issue of energy transition .
PTBA had previously built a Solar Power Plant at Soekarno Hatta Airport in collaboration with PT Angkasa Pura II (Persero). The Solar Power Plant consists of 720 solar panel systems with photovoltaics with a maximum capacity of 241 kWp and is installed in the Airport Operation Control Center (AOCC) Building. This Solar Power Plant has been fully operational since October 1 2020.
Aside from business development in the NRE sector, PTBA is also implementing a program to build a Solar Power Plant to power agricultural irrigation pumps to improve the welfare of the community around the company's operational area.
Farmers can harvest up to three times a year because of this solar irrigation. PTBA has installed 6 solar irrigation with a total capacity of 192 kWp spread across South Sumatra, Lampung and West Sumatra to date.
Coal Transportation Project
In line with the Company's target to increase the coal transportation capacity of the railway line to 72 million tons per year by 2026, the Tanjung Enim - Keramasan coal transportation development is being carried out with a capacity of 20 million tons per year. PTBA’s scope includes the Train Loading System and Coal Handling Facility, while PT KAI’s scope includes preparing the dock and transportation facilities (carriages). This line is expected to be operational in the fourth quarter of 2024.
Furthermore, in order to support the BUMN Synergy Cooperation for Coal Supply Chain to Increase National Electricity Resilience, PTBA, KAI, and PLN signed a Head of Agreement on February 16 2022, to develop coal transportation to Perajen Pier with transportation capacity of 20 million tons per year and is expected to be operational in the third quarter of 2026
Carbon Management
To support the Government in achieving the Net Zero Emission target by 2060, PTBA implements the best mining practices (Good Mining Practice) with decarbonization programs.
PTBA's total reclamation area had reached 2,198.93 hectares (ha) and the total rehabilitation area for River Watersheds (DAS) was 3,575.43 ha as of September 2023,.
Not only land revegetation, PTBA has implemented a number of programs to support decarbonization. From an operational perspective, the company implements Eco Mechanized Mining, replacing mining equipment that uses fossil fuels with electricity. Some of the electricity-based tools that have been used by PTBA include the PC-3000 Shovel Electric Excavator, a hybrid 100 Ton class Dump Truck (Diesel and Electric), and an Electric-based Mining Pump. PTBA has also operated electric buses at Tarahan Port and the Tanjung Enim Mining Unit.
The company also implements the E-Mining Reporting System, which is a real time and online production reporting system, to minimize conventional monitoring that consumes fuel.
These decarbonization programs are part of PTBA's carbon management roadmap until 2050 which will continue to be implemented and developed sustainably in every line of the company to provide optimal results.
