Sale of coal was mainly in the local market as part of the group’s efforts in meeting the domestic market obligations imposed by the Indonesian government.
Additional machinery is being commissioned to step up the production and delivery of coal to meet a production target of 50,000t per month.
The mining, operation and production licence for the project, which expires in September 2025, provides the necessary authority to carry out the full scope of coal mining activities including construction, production, processing, transportation and sale.
The coal sales were delivered onto barges anchored at the private jetty of PT Pancaran Surya Abadi.
The transacted prices were within the range of $US32 and $35 per ton.
As provided in the joint mine management agreement between the company and PT Toba Jaya, the coal sales translate into a royalty between $1 and $2.50/t for the company.
“With the expected improvement in coal prices in the market, the company will enjoy a royalty of $2.50 per metric ton and $3 per metric ton when the coal price – on [free on board] barge basis – reaches and exceeds $35 per metric ton and $45 per metric ton respectively,” it said.
Two new loaders were commissioned during the quarter under review as part of Toba Jaya’s efforts to improve the delivery and loading of coal at the stockyard and jetty.
Three additional excavators were also delivered to the mine pit to meet the planned production target of 50,000t per month.