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Bumi Resources books net profit through thrift measures
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PT Bumi Resources' board of directors explains the company's performance in a press conference in Jakarta on Thursday. (Kompas.com/Estu Suryowati)
I
ndonesia’s largest thermal coal miner PT Bumi Resources seems to be starting to get back onto its feet as it has finally booked a net profit in 2016, on the back of recent energy efficiency measures.
Bumi recorded a US$100.6 million net profit in 2016, reversing a net loss of $1.92 billion in the previous year.
The positive turnaround was reportedly a result of its efforts to reduce fuel use in production and to optimize electricity generated from its own power plants.
(Read also: Bumi Resources expects higher coal sales in 2017)
Consequently, fuel accounted for only 14 percent of its total coal cash costs in 2016, dropping from 19 percent in the previous year. Its coal cash cost then decreased to $27 per ton from $30.2 per ton.
“Controlling cash costs is important to make our operations more efficient,” Bumi Resources president director Ari Saptari Hudaya said on Thursday
“Moreover, because we have many coal reserves in the country, we’ve been trying to extract coal that is not too deep to mine [to lower operation costs]. Hence, our coal production could be maintained at around 80 million tons a year amid low coal prices in recent years.”
Bumi’s coal production stood at 86 million tons in 2016, up from 81 million tons a year before, amid a recent surge in global coal prices. The company aims to sell 96.3 million tons of coal throughout 2017. (tas)
