JAKARTA - PT Kapuas Prima Coal Tbk (ZINC) is confident that it will achieve this year's adjusted sales target despite operational and transportation restrictions due to the ongoing coronavirus (COVID-19) pandemic, said CFO Hendra Susanto William.
In the first semester (1H) of 2020, the company posted Rp 301.4 billion in sales, less than 50% of this year's total sales target, and Rp 41.9 billion in current-year profit. As of July, it produced 5,741 tonnes of lead concentrates, 19,238 tonnes of zinc concentrates, and 427 tonnes of silver.
"With the start of the new normal phase, the company is confident that it can make the effort to achieve its adjusted sales target this year, although sales in the first half of the year was less than 50% of this year's total target," Mr William said in an official statement received by IDNFinancials.com, Monday (24/8).
Performance declines, he said, are common in the Indonesian mining sector due to plummeting commodity prices following lockdowns imposed to curb the spread of coronavirus. Thus, ZINC has been trying to lower expenses and costs in order to improve efficiency.
According to Mr William, the company remains committed to continuing the development of lead and zinc smelters in Pangkalan Bun, Central Kalimantan to support the government's downstreaming programme. The smelters, scheduled to commence operations in 2021 and 2022 respectively, will have capacities of 20,000 tonnes of metal per year for lead and 30,000 tonnes of ingots per year for zinc.
To support the target, ZINC has also signed an electricity sales and purchase agreement with [state-owned electricity firm] PLN to purchase 2.5 MVA of electricity in the middle of this month for the lead smelter, and an additional 35 MVA for the zinc smelter will be discussed further with PLN," Mr William said. (MS)