Coal Business

The strengthening of world coal prices in 2021 is the main factor driving the increase in the performance of the coal segment. Amid the ongoing COVID-19 pandemic, the Company strives to optimize production while still implementing strict health protocols. In addition, high rainfall is a challenge for the Company to increase production.

Amidst various existing challenges, throughout 2021, the Company managed to post an increase in production by 21% to 30.04 million ton from 24.84 million ton in the previous year or equals to 102% of the stipulated 29.52 million ton in 2021.

Increase in coal production in 2021 was caused by a rise in demands in 2021, among others.

Such increase also encouraged increase in coal transport volume in 2021. Throughout 2021, total coal transport volumes reached 25.42 million tons, increasing by 7% from 23,80 million tons in the previous year. The Company cooperated with PT Kereta Api Indonesia to transport coal from mining site to Company’s ports in Kertapati, Palembang, and Tarahan, Lampung

The Company took advantage of the momentum of increasing coal prices in 2021 by increasing sales. Throughout 2021, the Company recorded coal sales of 28,37 million tons, an increase of 9% from the previous year of 26.12 million tons.

The Company’s sales in 2021 are still primarily focused on meeting domestic needs. However, the Company also took advantage of the momentum of increasing world coal prices by encouraging export sales. In 2021, the Company posted a domestic sale of 16.11 million ton or equals to 57% of total sales of the Company. The rest was sales from export at 12.26 million ton.