PT Bukit Asam Tbk has a long history in national coal mining industry.

The Company operations commenced as Air Laya Mine began operating in Tanjung Enim in 1919 with the Dutch Colonial Government as the operator. At the time, the mining activities were conducted by an open pit mining method.

UPTE Workflow

 

PRODUCTION

Amid the decrease trend in global coal prices, the Company remains committed to increase the growth rate of its coal production. This commitment is proven by continuosly increase of the Company’s coal production in which is followed by the increasing in railway transport capacity. This could be seen from the Compound Annual Growth Rate (CAGR) of railway production and capacity of railway in the last years 2015 until 2019, respectively 8.80% and 11.31%. The increase of railway transport capacity is part of the coal transportation agreement clause with PT KAI. This agreement also helped the Company to continue to increase production by implementing an integrated production strategy, namely focusing on aspects of efficiency, quality of production, and maintaining coal availability at optimal levels without setting aside the implementation of the principles of Safety, Occupational Health and Environment (OHS).

Subsidiaries/affiliates of PT BPI and PT HBAP contribute to the revenue of the Company through profit absorption according to the portion of the Company’s share ownership. In 2019, the comprehensive profits of PT BPI and PT HBAP were Rp202.25 billion and Rp132.54 billion. So that the profit contribution for the Company in the current year amounted to Rp179.45 billion.

Coal production in 2019 was realized at 29,068,924 ton consisting of the production of the Tanjung Enim Mining Unit (UPTE) of 28,075,437 tons, the production of Peranap Mining Unit of 4,445 tons, and PT Internasional Prima Coal (IPC) of 989,042 tons. The production achievement in 2019 has increased by 10% from the achievement of the previous year’s production. To optimize the selling of the Company’s coal, then in 2019, the Company did not carry out coal purchasing.

Description 2020 2019 2018 2017 2016 (ton) Deviation Increase/Decrease (%)
PRODUCTION
Tanjung Enim Mining Unit
• Air Laya Mine 5.270.842 7.777.286 7.815.650 5.560.381 2.255.269 9.805.949 41
• Muara Tiga Besar North 7.253.285 7.020.898 5.912.219 5.921.553 2.883.226 (9.334) (1)
• West & Central Banko 11.710.244 13.277.253 11.640.131 11.893.359 6.089.692 (253.228) (2)
Total UPTE Production 24.234.371 28.075.437 25.368.000 23.375.293 18.778.867 1.992.707 9
Peranap Mining Unit 7.451 4.445 2.115 - - 2.115 111
PT Internasional Prima Coal (IPC) 600.538 989.042 985.286 870.505 844.025 114.781 13
Total Production 24.842.360 29.068.924 26.355.401 24.245.798 19.623.889 2.109.603 9
PURCHASE
PT Bukit Asam Prima - - - 364.669 1.198.358 (364.669) (100)
Total Production and Purchase 24.842.360 29.068.924 26.355.401 24.610.467 20.822.247 1.744.934 7

TRANSPORTATION

The Company cooperates with PT Kereta Api Indonesia (PT KAI) in the process of coal transportation from Tanjung Enim to Tarahan Port Lampung and Kertapati Barge Port Palembang. The process of coal transportation includes:

  • The arrangement of the amount and quality of coal which will be loaded into each carriage of the train through Train Loading Station (TLS).
  • The supervision and documentation of coal distribution to Port or Dock.
  • The unloading and loading of coal from the train carriages using Rotary Car Dumper (RCD) in Tarahan Port and Apron Feeder (AF) in Kertapati Barge Port.

Description 2020 2019 2018 2017 2016 Deviation Increase/Decrease (%)
Tanjung Enim – Tarahan 18.226.112 20.783.148 19.670.165 18.261.978 14.706.099 1.408.187 8
Tanjung Enim – Kertapati 5.571.504 3.458.856 3.017.087 3.101.352 3.014.728 (84.265) (3)
Total Load 23.797.616 24.242.004 22.687.252 21.363.330 17.720.827 1.323.922 6

SALES

Coal sales are still dominated by a desire to meet the needs of the domestic coal market, with a composition that reached 60.00% when compared to total sales volumes in 2019. To encourage revenue growth on sales, the Company sought to encourage export sales to countries such as India, Hong Kong, the Philippines, and a number of other Asian countries. In addition, the Company also sought to apply the sale of Medium to High Calorie coal products to the premium market, with the aim of increasing margins and increasing profit performance.

Description 2020 2019 2018 2017 2016 2015 2014
SALES
Domestic 14.135.858 16.677.939 13.910.463 14.386.772 12.267.467 10.051.853 9.300.547
Export 11.989.018 11.115.462 10.782.399 9.241.103 8.485.700 9.049.368 8.664.003
Total Sales 26.124.876 27.793.401 24.692.862 23.627.875 20.753.167 19.101.221 19.962.550