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Harum Energy projects coal production of 1 million tons in first quarter of 2019

08 March 2019 06:19 AM  Company: PT. Harum Energy Tbk[HRUM]
Rp. 1,255  -60 (-4.56%)

JAKARTA - During the first quarter of 2019, PT Harum Energy Tbk (HRUM) predicts coal production to reach 1 million tons, or 20% of the annual target.

"For this year we are aiming for a combined coal production of 5 million tons," said Harum Energy Managing Director Ray Antonio Gunara to earlier this week.

HRUM's coal production target rises slightly compared to last year's production of 4.6 million tons. Management said it had not planned to add new export markets. So far, Harum Energy has been selling coal output to several countries such as Malaysia, South Korea, Taiwan and China.

Because Harum produces high calorie coal, which is above 5,500 kcal per kg, HRUM must transfer quota to meet 25% DMO obligations.

"In an effort to fulfill the DMO obligations in accordance with applicable regulations, HRUM has transferred the quota in accordance with the mechanism regulated by the Ministry of Energy and Mineral Resources," Ray said.

Ray said, the selling price of coal for the level of calories they produce is in the range of US$ 60 - US$ 65 per ton. He hopes coal prices can be better and more stable.

In 2019, HRUM targets revenues of US$ 300 million to US$ 350 million. While regarding capital expenditure, this year they prepared a capital expenditure of US$ 8 million from internal cash. (AM/LM)

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PT. Harum Energy Tbk [HRUM]   Rp. 1,255   -60 (-4.56%)