PT Bukit Asam Tbk (PTBA), a member of the MIND ID Mining BUMN Holding, managed to sustain good performance in the first quarter of 2024.In the first three months of 2024, the company generated IDR 9.4 trillion in revenue and IDR 1.5 trillion in EBITDA. After expenses, PTBA made a net profit of IDR 790.9 billion. Meanwhile, the company's total assets as of March 31, 2024 were IDR 38.4 trillion.
The achievement of net profit was supported by an increase in the Company's operational performance during the first quarter of 2024. PTBA's total coal production in the first quarter of 2024 reached 7.3 million tons, 7 percent higher compared to the same period in 2023 of 6.8 million tons.
This increase in production corresponds with the 10% increase in coal sales volume to 9.7 million tons. In the first quarter of 2024, the Company reported export sales of 3.8 million tons, a 4% increase over the same period the previous year. Exports have increased to several nations, including India, South Korea, Thailand, Vietnam, and Malaysia. Meanwhile, the realization of Domestic Market Obligations (DMO) was 5.9 million tons, representing a 14 percent annual growth rate.
Coal shipment by train reached 8.4 million tons between January and March 2024, a 9% increase over the same time last year. Despite being affected by the collapse of a girder on the Bantaian flyover construction project last March, coal transportation via train was nonetheless able to reach the target.
This year’s challenges for the Company include corrections in coal prices and market fluctuations. The average ICI-3 coal price index was corrected by around 21 percent on an annual basis from USD 100.44 per ton in January-March 2023 to USD 78.9 per ton. Meanwhile, the average Newcastle coal price index was corrected 49 percent on an annual basis to USD 125.76 per ton.
As a result, PTBA continues to strive to maximize domestic market potential as well as export opportunities in order to sustain strong performance. The company also consistently prioritizes cost leadership in every line of the company, allowing for optimal implementation of sustainable efficiency.
Aside from that, the Company anticipates that the formation of a Management Agency Partner (MIP) would be completed shortly and have a positive impact on PTBA's financial performance.
Company Target 2024
In planning, the Company observes the latest market developments and anticipates various dynamic factors. In 2024, PTBA targets coal production of 41.3 million tons, sales of 43.1 million tons, and transportation of 33.7 million tons.
Development Project Progress
Coal Downstreaming
PTBA is committed to supporting government policies that encourage coal downstreaming and maintain national energy security. Collaboration with many stakeholders is established to promote increased added value of coal. This includes collaboration with the National Research & Innovation Agency (BRIN) and various universities.
The Company has provided land for downstream industries development in collaboration with potential partners. In addition, PTBA has allocated special coal reserves for downstream projects, ensuring that the downstream industry's coal needs are met.
The energy transformation is happening across the globe. With the government targets to achieve Net Zero Emissions by 2060 and PTBA’s vision of becoming a world-class energy company that cares about the environment, PTBA is diversifying its business into new and renewable energy (NRE) industry.
The Company has so far built a solar power plant at Soekarno-Hatta Airport in collaboration with PT Angkasa Pura II (Persero), which has been fully operating since October 2020. The solar power plant, which has a maximum capacity of 241 kilowatt-peak (kWp), is installed in the Airport Operation Control Center Building (AOCC). PTBA is also collaborating with Jasa Marga Group to build solar power plant on toll roads. On September 21, 2022, solar power plant with a capacity of 400 kWp was constructed and inaugurated on the Bali-Mandara Toll Road.
Currently, PTBA is also exploring opportunities to develop hydrogen-based NRE both for its own purposes and supporting future partnerships in PTBA's transportation and production business chain system.
Coal Transportation Project
PTBA had started construction of a new coal handling facility to increase coal transportation capacity along the Tanjung Enim - Keramasan railway line. On December 30, 2023, the groundbreaking procession was held in Tanjung Enim.
The construction of coal transportation facility of Tanjung Enim - Keramasan link, which has a capacity of 20 million tons per year, is part of PTBA's collaboration with PT Kereta Api Indonesia (Persero) or KAI. PT KAI is constructing the facilities and infrastructure for rail transportation, while PT Kereta Api Logistik (Kalog) is building the dock facilities in Keramasan.
Carbon Management
To support the Government in achieving the Net Zero Emission target by 2060, PTBA implements Good Mining Practice including decarbonization programs.
PTBA’s total reclamation area as of December 2023 is 2,222.08 hectares (ha). Meanwhile, the total area designated for rehabilitation of Watershed Areas as of December, 2023 is 5,199.18 ha.
In addition to land revegetation, PTBA has implemented a number of other decarbonization programs. From an operational standpoint, the company utilizes Eco Mechanized Mining, replacing mining equipment that consumes fossil fuels with electricity. PTBA has used a variety of electricity-powered tools, including the PC-3000 Shovel Electric Excavator, a 100 Ton hybrid Dump Truck (Diesel and Electric), and an Electric-based Mining Pump. PTBA has also run electric buses at Tarahan Port and Tanjung Enim Mining Unit.
The company also implements E-Mining Reporting System, which is a real time and online production reporting system to minimize the need for conventional fuel-based monitoring.
These decarbonization programs are part of PTBA's carbon management roadmap until 2060 which will be implemented and developed sustainably in every line of the company to provide optimal results.
