Bukit Asam to suspend exploration activities for six months
JAKARTA. PT Bukit Asam Tbk (PTBA) has announced that it will suspend all exploration activities for the next six months to maintain its profit amid plummeting global coal prices.
According to Bukit Asam Corporate Secretary Apollonius Andwie C., the suspension of exploration activities will last until March 2021. "The company will not carry out any exploration activity to increase resources outside the areas for which the company already has permits," he said in a stock exchange filing.
During the suspension, Bukit Asam will still produce high-calorie coal. It will also reduce its coal sales volume if it has not obtained long-term sales contracts.
In the first quarter (Q1) of 2020, Bukit Asam posted Rp 1.52 trillion in net profit, down 14.18% year on year (yoy). In the same period, its revenue dropped 4% yoy to Rp 5.12 trillion. (KR/MS)